The importance of supplier relationship

Prepared by BRIOUAL

Amal KHCHAF

Mouna TAHIRI

Soukaina

SOLARIS

• What is the SR ? • How it works ?

Definition of the supplier relationship

The unbroken Supply chain

Context

• What are the problems associated with SR ?

• How does SR empower compagnies ?

Strenght and Weaknesses of a SR

Outline

The importance of SR

Why Strategic Supplier Relationships are Important ?

Supplier relationship is everything you do with suppliers and in your supply market, not related to a specific contract,

It is a discipline of working collaboratively with those suppliers that are vital to the success of your organization, to maximize the potential value of those relationships.

Supplier relationship is critical to any organization while suppliers can directly impact the financial performance of a buying enterprise, as they influence product development costs, inventory levels, manufacturing schedules and the timelines of delivery of goods and services.

Determining the supply and purchasing strategies.Working procedures with suppliers.Selection of suppliers and evaluation criteriaManagement of contracts with suppliers to doLook towards the same strategic objectives with

suppliers.Good communication with suppliers. Evaluation of other suppliers which are candidate for

your supply chain.

How SR works

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+++What Is The Problem With Suppliers?

- Unclear expectations- Not mutually beneficial (Win-Win)- Multi-supplier environment- Miscommunication- Poor governance- Poor cultural fit- Lack of coordinated management

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Elements of successful supplier relationships Focus : A common vision for the relationship,

with agreed strategies and activities Trust : Open communication and disclosure of

business drivers Performance : Continuous improvement

towards agreed targets and KPIs People : Clearly defined roles and responsibilities Proactive : Anticipating business needs and

providing creative solutions Profit at Risk: Establishing real metrics to drive

behaviour for both parties

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The supply chain

Supply Chain should be one single, unbroken chain from the supplier’s processes through the customer’s

Buyers must have the same expectations from themselves and their companies as they have of their suppliers

One weak link can disrupt the entire supply chain

SELL RECEIVE ORDER SCHEDULE/PLAN MANUFACTURE SHIP PAYMENT

SOLARISWhy Strategic Supplier Relationships are

Important1.A new supplier commences operations every minute2.A supplier files bankruptcy every 8 minutes 3.A supplier ceases operations every 3 minutes4.A judgment is filed against a supplier every 14

seconds5.A supplier name change happens every 2 minutes6.A supplier ownership change happens every 4 hours7.A supplier’s risk profile changes every minute

…world of constant change and challenges (opportunities)

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Conclusion

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+++Think big, Win the world