Close this search box.
Horizon 2024 is here! Join hundreds of procurement visionaries in Miami on May 15-17, 2024. Register Now!

What is Supplier Management?

Supplier Management involves the systematic management of supplier relationships to ensure they meet organizational standards and performance metrics. It includes evaluating, onboarding, monitoring, and collaborating with suppliers to optimize their performance and contribution to the organization’s goals.

Key Activities in Supplier Management:

The Supplier Management process begins with supplier evaluation, where potential suppliers are assessed based on criteria such as quality, cost, and capability. Onboarding involves integrating new suppliers into the organization’s procurement system. Monitoring involves tracking supplier performance to ensure compliance with contractual terms and organizational standards. Collaboration involves working closely with suppliers to improve performance and address any issues.

Objectives of Supplier Management:

The primary objective of Supplier Management is to build strong, collaborative relationships with suppliers, improve supply chain resilience, and achieve better procurement outcomes. Effective Supplier Management helps organizations manage supplier risks, ensure compliance with procurement policies, and optimize supplier performance.

Technology Use in Supplier Management:

Digital Supplier Management solutions provide a range of tools designed to enhance the supplier management process. These tools include supplier data management, performance tracking, and collaboration platforms. By leveraging these technologies, organizations can manage supplier relationships more efficiently and effectively.

Benefits of Digital Supplier Management Solutions:

Implementing digital Supplier Management solutions enables organizations to achieve greater visibility and control over their supplier relationships. It helps organizations build stronger supplier relationships, improve supply chain resilience, and achieve better procurement outcomes. Digital tools enhance the efficiency and effectiveness of supplier interactions, leading to improved procurement performance and reduced risks.

Request a Demo