Question

What are the supplier strategies

Answer 1

Some of the basic supplier strategies are, such as –

-          ‘Partnership’ which helps in maintaining the long-term business relationship and best fit for strategic products. It involves future need forecasting, cost analysis, supplier selection, material schedules, supplier risk analysis, and ratings for vendors, etc. Most of the decisions are made at board level and managed cross functionally.

-          ‘Competitive bidding’ is utilized for short term to get the best deal option to leverage general commodities. It helps in improving the product and market knowledge base, get the alternatives for products or suppliers; relocation of purchasing volumes against supplies, helps to determine the target pricing while making purchase.

-          ‘Secure supply’ helps in reducing the supply risk for short or long term and best suited for ‘bottleneck’ product line. It involves the development of preventive measures and to make decisions while purchasing.

-          ‘Category management and e-procurement solutions’ helps in reducing the logistic complexity and number of suppliers but helps in improving the operational efficiency. Best suited for routine products and to make decisions while purchasing.