Technology improves efficiency and reduces the cost of any process, there’s no doubt in that. However, the problem pertaining to technology is that it’s often under-utilized. When it comes to the supply chain, technology can make a significant impact. Using the help of technology not only internal operations can be improved upon, but also the use of the same can strengthen buyer-supplier relationships.
Large organizations generally focus all their attention towards their customers, constantly improving upon the buying experience provided to them. However, the suppliers are often overlooked and relations with latter are not given much importance. Procurement companies must realize that establishing healthy relations with their suppliers would ensure quality services and efficient processes. Suppliers and organizations generally work on basis of a give and take relationship; however, suppliers who venerate their buyers tend to prioritize and, strive to provide a paramount shopping experience to them.
Pinpointing the right suppliers is the first step towards forging any successful business partnership. Again technology would act as a savior because locating the right suppliers manually would turn out to be a time taking, highly ineffective, and futile activity. Technology helps simplify the process and quickly identifies the best fit with just a few simple clicks. The next logical step would be the setting up of all the necessary communication channels and payment processes, all of which directly relies on the use of technology.
Businesses looking to enhance and improve their supplier relations should consider implementing the use of different technologies to advance these three parts of the process:
The most pragmatic way of confining the selection process of suppliers, into a brief activity, instead of stretching it to a daunting extent, is the adoption of E-sourcing, which imparts the flexibility to compare and, alleviate suppliers, on some set requisites, making the process a notch efficient and, effective. With E-sourcing in place, buyers’ reliance on seller’s recommendation is reduced to a significant extent, when it comes to on-boarding a trustworthy supplier. This is because all the necessary information required, in order to, determine the best supplier for the role, is available on a comprehensive platform, which makes assessing a supplier, easy and, straight-forward.
Communication between buyers and, suppliers can be both detached and irregular, which leads to futile friction between the two parties. Introduction of new channels for correspondence can drastically help in establishing transparency and, keeping any miscommunication at bay. Communication platforms that allow buyers and suppliers to communicate in real-time make the transaction process more fluid and efficient.
Technological advancements can augment and, alleviate stress, of the payment process by tracing invoices and storing payment information. With payment technologies, organisations are now presented with the amenity to compare prices and, charges up front — helping build trust between business partners. Instead of requesting receipts or transaction information, buyers and sellers can check invoices without unnecessary communication.
Sourcing, communication and, payment processes between buyers and, sellers are in frantic requirement of a comprehensive facelift. Procurement leaders need to rethink their current policies and consider assimilating more technological solutions into their systems. Using technology not only helps improve the efficacy of the procurement process, but also the relationships, which are needed to sustain a successful supply chain.