Improve product quality for suppliers in the supply chain

Suppliers play an important role in the supply chain; In the complex environment of today’s supply chain systems, each relationship between customers and suppliers is more important than ever and becomes an important factor for success.

What is supply development?

Supply development is a form of stimulating strategy that works directly with multiple suppliers at the same time to help increase quality and competitiveness. It encompasses the expertise of suppliers and associates it with the goals of buying and selling organizations.

The diversity of supply to an appropriate level will help build strong relationships and benefit all stakeholders. This approach is similar to the relationship between management and cooperation.

Procurement companies and suppliers will select and devise the best strategy based on the relationship between the two sides, according to market and industry concerned.

The role of supply development in the success or failure of the supply chain.

1. Get a competitive advantage

Through training and guidance of suppliers in the same system, companies can partner with those who understand the different aspects of their business such as price and product quality. This gives suppliers more power to make their products more competitive to the market.

2. Encourage cooperation between suppliers together

Small, lacking resources, skills, or experience to meet the stringent requirements of today’s supply chain. The supply development program can encourage small suppliers to work, work together, and set common directions for development. What these units can hardly do if they go alone.

3. Promote innovation

Stimulating different suppliers to work together to come up with solutions to a common problem that can lead to unexpected directions. That will help improve the quality of products and accompanying services.

4. Create long-term relationships between supplies

Supply development requires trust and cooperation for mutual benefits. These factors stimulate companies to make long-term contracts with suppliers, helping them receive more economic benefits on the road to development and success. This can foster a healthy relationship and bring benefits to both sides.

5. Address quality issues

One-to-one intervention with each provider provides opportunities for improvement for both parties. For example, suppliers can offer best practices so that their customers can receive support such as improving the requirements needed to access certain documents. In contrast, customers can indicate areas where suppliers are allowed to improve their services.

6. Improve customer satisfaction

While supply development is the development goal of suppliers to create economic benefits for themselves, the relationship between the company and suppliers can have a positive impact on customers. The stronger the sales-purchase relationship, the better the quality of products, services and economic benefits of the parties.

Supply development and relationships should be targeted by any organization, especially those working with multiple suppliers in different areas. Improved supply-demand relationships across the supply chain will lead to better products, creating consumer confidence.

Productivity and Quality Office