SUSTAINABILITY
This transparency enhances operational efficiency , reduces risks and supports strategic decision-making that drives overall supply chain success .
Tracking suppliers Through RELATIONS tools , companies can keep a close eye on suppliers , where this transparency and accountability encourages continuous improvement and reliability . LeanLinking ’ s platform emphasises consolidating both hard and soft performance data into a cohesive solution that enhances supplier management . Hard data metrics such as On-Time-In-Full ( OTIF ), parts per million defects , delivery times and non-conformance are pivotal for evaluating supplier reliability and quality consistency . These metrics are crucial because they directly impact operational efficiency , cost-effectiveness and customer satisfaction .
Soft feedback mechanisms , including surveys and reviews , offer qualitative insights into supplier relationships and performance from the customer ’ s viewpoint . This feedback loop is instrumental in fostering continuous improvement and strengthening collaboration between buyers and suppliers .
Through RELATIONS , transparency supports proactive supplier management through its data-sharing ability between suppliers , triggering notifications for non-conformances . This ensures swift issue resolution and accountability within the supplier organisation . Such transparency
Supplier costs now represent a larger share of revenue , typically
40-70 % of revenue in a manufacturing company
and accountability are essential because they encourage suppliers to uphold commitments and continuously enhance their performance .
Lars explains : “ RELATIONS supports proactive supplier management by enabling informed decisionmaking and promoting a culture of mutual improvement and success . This integrated approach allows procurement professionals to effectively monitor supplier performance , mitigate risks and achieve better business outcomes through reliable partnerships and ongoing optimisation efforts .”
Staying informed with data RELATIONS ’ data analytics tools provide timely and actionable insights , enabling
190 September 2024