The effectiveness of cooperation between suppliers and manufacturing enterprises in the supply chain

Suppliers always play an important role in the supply chain or any type of business. Regardless of manufacturing industries, suppliers will have a vital role for the success or failure of every company. Therefore, the relationship between seller-buyer needs to be reasonably concerned.

Collaboration between supplies is considered to be the efforts of both customers and sellers to improve the quality of products and services to consumers. This collaboration brings benefits to both parties, including reducing costs, streamlining processes, minimizing process and in-product errors, improving product and service quality. service.

Instead of simply buying and selling goods between the two parties, suppliers can come up with other business strategies, pointing out the units that work with them to improve productivity, quality and increase the quality. compete with big rivals.

How to get an effective cooperation between supply and users?

Supply sources usually come in different forms and different levels. The expansion of cooperation with suppliers and customers often depends largely on the determination of both sides.

At a lower level, cooperation can be as simple as emailing or meeting with regular partners. However, today with a very high market rate and many new requirements, cooperation requires both parties to share data, competencies, skills, information and even possible risks.

Effective cooperation requires a high level of trust between the two sides. Many companies need to change their work culture and business habits just to bring about success in work.

There are many factors that bring success in cooperation with suppliers, among which is transparency and open communication.

Steps to improve supplier relationship

– Applying win-win thinking: Normally, the methods used are mainly aimed at reducing costs, lowering product costs to the lowest possible level. However, these methods are often only beneficial to the buyer party company; In other words, only one party will benefit in this case, the other side will suffer a loss. True cooperation will have to benefit both parties, thus creating a new relationship that is sustainable and long-term.

– Improve supply chain capabilities: The important thing in working with suppliers is traceability of goods in the supply chain. This gives the buyer company an overview of its supply, helps them feel more secure about the product and thereby improve the relationship of both parties.

– Use and analysis of data: In collaborations between businesses, information is most important. Data can be used to analyze and find the good or bad points of the supply chain. This helps improve the quality of products and services that the supply chain brings.

Productivity and Quality Office