The relationship between the two parties is becoming more and more stable and close, and the other is the process of developing new potential suppliers, that is, developing, selecting, investigating, analyzing, negotiating and evaluating new suppliers, so as to turn potential suppliers into formal suppliers.
A supplier is an enterprise or an individual who provides various required resources to an enterprise and its competitors, including raw materials, equipment, energy, services and funds.
Their situation will have a great impact on the marketing activities of enterprises, such as the price change and shortage of raw materials, which will affect the price and delivery time of enterprise products, and then weaken the long-term cooperation and interests between enterprises and customers. Therefore, marketers must have a comprehensive understanding and thorough analysis of suppliers, who are both rivals and partners in business negotiations.
The importance of supplier management:
1, reducing the cost. Cost is the "eternal pain" of enterprises. A survey in the United States shows that the purchasing cost of American manufacturing industry accounts for about 40%-60% of the unit cost of products, and the proportion of purchasing cost will increase with the concentration of core competence and the increase of outsourcing ratio, so suppliers are directly related to the final cost of products.
2. Improve product quality. The research by Willis and Huston 1990 shows that 30% of quality problems are caused by suppliers, and good supplier management can effectively improve product quality.
3. Reduce inventory. Reducing inventory pressure makes manufacturers transfer front-end inventory to suppliers, which is not conducive to the establishment of cooperative partnership. Supplier management can coordinate inventory management.
4. Shorten the delivery time. 80% of the delivery time of products is caused by suppliers, so shortening the delivery time of products should start from the source.