Suppliers or vendors of raw materials play a very important role in an organization’s entire supply chain. Being at the head of the supply chain, any slight distortions caused by the suppliers are likely to see their consequence across the whole organization. Production slows down to an eventual halt, quality might be affected, and revenues go down.
Once they recognized the importance of suppliers, organizations dumped their age-old approaches to supplier management and tried to find innovative ways of managing their suppliers. In the traditional processes, the supplier-buyer relationship ended once the sale was finished. However, the modern approaches look at a much more collaborative relationship between suppliers and organizational procurers. Instead of it being one-way communication, supplier management and supplier relationship have now become two-way streets where both of them work together to ensure that there aren’t any gaps in the chain.
A big pain point for both the stakeholders was that there was no way for the suppliers to communicate in real time with the buyers any changes in prices and availability or non-availability of goods. As prices in several industries are highly volatile, this would result in a loss for either party which would then lead to ill-will between the parties.
This is where online procurement software comes up trumps. Procurement software provides a common platform for an organization and its suppliers and allows for a much more collaborative relationship between them. With this software, organizations can give their suppliers a chance to:
Log in to the system and update their prices, availability, etc…
View any purchase orders or bid for any RFQs
Define and update terms and conditions like delivery times, lead times, etc…
Create invoices for purchase orders
All of this is done seamlessly and in real time. So, want to deploy online procurement software to manage your suppliers optimally?