Is It Time To Change Suppliers?

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You rely on suppliers and vendors to deliver the quality raw materials that you need for production in order to provide superior products to customers.  However, what happens when deliveries arrive late?  Manufacturing schedules can be delayed and you risk backorders or sending partial shipments to customers.  Instead of risking your performance and customer satisfaction, it may be time to measure supplier and vendor delivery and performance to strengthen your supply chain.

Chances are good that your procurement department knows which suppliers can deliver the right raw materials, in the right quantities, and on time – and those that don’t.  A common knee-jerk reaction for poor supplier performance is to overstock inventory to alleviate potential delivery problems.  However, this can impact your cash flow and can lead to wasted or expired inventory.  Though you may be tied to suppliers because of contractual obligations, price, or they simply are the only suppliers that have what you need, you don’t have to be stuck with poor performance.

The Supply Base Manager is a browser-based application that can provide insight into supplier or vendor performance.  You can monitor individual inventory items, lead times, expenses, product availability, and other details for each supplier.  With either a summary view or detailed view of each supplier and inventory item, you can incorporate “safety time” into the lead times that you may already utilize when planning replenishment orders.  In this case, for late deliveries or statistically likely backorders, you can add time in the ordering process so that you get what you need when you really need it.  Instead of wasting cash on extra inventory, you can strategize orders and lead times.

The Supply Base Manager also offers three configurable reports including a Days Supply of Inventory Report, Open PO Report, and a Vendor Forecast Report.  These detailed reports can provide valuable insight into your inventory position and provides your suppliers with the same information.  Your suppliers can then position themselves to meet your needs while reducing their chance for stock-outs and backorders.

You may not have the opportunity to change suppliers; however, you can manage their performance and reduce the impacts of poor performance.  Contact RockySoft for more information about using Supply Base Manager to get the most out of your suppliers so you can deliver quality products to your customers.

By Jeffrey Porter with RockySoft, Microsoft Dynamics software provider for demand planning

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