Why It’s A Bad Idea To Stress Out Your Suppliers

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You likely rely on a set of suppliers for important parts or products for your customers.  Your ability to manufacture, assemble, or distribute these items to customers could come under threat if you are putting stress on your suppliers.  If suppliers are working at full capacity to provide the products you need during normal times, how well will they (or you) fare when you ‘up the ante’ during busier times such as the holiday season?              

While you can control your workforce and make adjustments to prepare for high volume manufacturing or distribution activities, such as preparing for the busiest shopping time of the year, you can’t have quite as much control with your supply chain.  The businesses that you rely on for inventory items may not be able to adjust to your higher volume needs.  Their ability to respond, or inability, can have an impact on the quality of products you receive.  Your supplier could make mistakes, sending you the wrong items, wrong quantity, or lesser quality of items, which you could, unknowingly, use in your own manufacturing and distribution operations.  Providing the wrong products or poor quality products to your customers could have disastrous consequences.  Customers will be unsatisfied with your products, you can lose money with the returns and replacing those items, and you can lose future business as well as tarnish your reputation.

Improving communications with suppliers can protect your business and customer satisfaction, and so can monitoring your activities with an enterprise resource planning (ERP) solution.  You can organize supplier data within an ERP solution and gain greater insight on quantity and quality of items that you order from your suppliers.  Monitoring inventory, manufacturing, and sales data within your ERP solution will also help you spot trends with business operations.  You can determine peak times, slow times, spot trending products, and products that are becoming obsolete.  By harnessing and using your business data, you can make more accurate inventory predictions, giving your suppliers more lead time to prepare for the busy times.

Stressing out your suppliers could result in poor-quality products that you may inadvertently pass on to your customers.  Work together and protect the quality of your products by using an ERP solution.  Contact OmniVue for more information about using ERP to gain greater control and visibility into your supply chain.

By OmniVue, a Microsoft Dynamics GP and NAV Partner out of Georgia

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