The Payoff Of Working With Certified Suppliers

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The Payoff of Working with Certified Suppliers By Kris Beck, VP of Sourcing Product & Operations, Elemica In the past decades of the 70s and 80s, companies had the idea that the best way to get good pricing and service from a supplier, was to “beat up” on them. Then Toyota revolutionized the supply chain world with their lean manufacturing methodologies and total quality management systems that focused on eliminating waste to create value, while improving the quality of products. They also created a revolutionary corporate mindset– be nice to your suppliers and you will get more business. By working openly and closely with suppliers, and seeing them as true partners and collaborators, your business will operate better and more…show more content…
But software is not enough; companies also need to exchange timely, accurate, and complete information with their business partners in a scalable, flexible, and cost-effective way, which is what Supply Chain Operating Networks (SCON) also enable. Instead of creating and managing thousands of one-to-one connections with their trading partners, companies make a single connection to the SCON where their trading partners and thousands of other companies are also connected. However, organizations still have significant issues of trust when it comes to their suppliers, despite the tremendous efficiency and productivity gains companies acquire from collaborating with trading partners. There is a lot of talk in the media about collaborative supply chain networks, but to get the most out of these networks, businesses need to understand which suppliers it makes sense to collaborate with. However, organizations still have significant issues of trust when it comes to their suppliers, despite the tremendous efficiency and productivity gains companies acquire from collaborating with trading partners. Supply chain collaboration is a shared benefit for buyers and sellers when done correctly and with a win-win attitude. Often though, executives believe that sharing cost information and other internal data with trading partners breeds risk. The solution is to certify suppliers to ensure these trading partners bring your business a return on investment that you
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