How do you solve the riddle of managing a Low Cost Supplier?
It began of course with the outsourcing wave in the ‘90s, when someone in the organization had gone into a cost-saving-rampage and started dealing with suppliers no-one had even heard of before.
And while the supplier management team watched the proverbial kitchen sink being thrown into the hands of people- whom they have only met on teleconference, they all had the same sinking feeling-How are we going to manage these suppliers?
A decade later, not much has changed and it seems all famous supply chain management stories are still not exempt from the phrase “Little did he know …”
And this, is in spite of the fact, that the supplier management team cannot really do much about it, unless of course their name is ‘Clark Kent’. I mean how many global supplier can you possibly fly-to-and-inspect, how can you make sure all their equipment (or secondary vendors) adhere to regulatory compliance, how can you be sure there are no IP conflicts and how will you ever have time to gather and analyze the financial data of your supplier to evaluate them on Altman Z-score?
Well, the good news is that with advanced Supplier Management platforms, you can! Such solutions does not just make it easier to on-board and measure performance, but they can even help in supplier development. Thus supplier managers are transformed from helpless goal-keepers to wily center-forwards.