Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Spend analytics and Supplier relationship management at times of uncertainties

By Glenn Farrier Subscribe to RSS | March 7th 2012 | Views:
loading
 
  



Gone are the days when businesses used to be judged by the number of assets they possessed. Today, businesses are increasingly relying on Intellectual property and relationship both with the customers and their suppliers to beat the competition. Apple and Wal-Mart stand as good examples in the latter case.

With globalization, businesses are spreading their presence all across the globe. This also brings with it the challenges of managing a global supply chain. Supplier relationship management is increasingly gaining importance among the organizations. One of the prime reasons for the growing importance can be attributed to the volatile business environment faced today.

Volatility has affected not only the businesses, (the recent Japan earthquake & tsunami being the prime examples) but they are also having an impact on the suppliers (rise in interest rates and fear of recession are impeding suppliers from raising capital from the market).

As mentioned earlier this is the era of relationship, and trust plays a very important role in the same. Buyers and suppliers often don’t trust each other and feel that they are been exploited or taken for granted. Procurement technologies help in overcoming this problem.

With a volatile business environment, the responsibility of commodity managers has increased. Commodity managers should be in close touch with the market to understand the trend and impact of price variations on cost drivers of suppliers to negotiate better contracts. This is where technology like spend analytics makes the job of the category/commodity managers simple.

Advanced Spend analytics tool, enables category/commodity managers to be more proactive rather than being reactive to rising prices. The tools not only keep themselves updated with trends in the market but also analyze the impact of the trend on the cost drivers of the suppliers.

This provides commodity managers the ability to modify contracting terms with the suppliers based on the changes in the market condition ensuring mutual benefit. Technology brings with it the element of transparency which helps improve on the element of trust.

Having a stable and healthy supplier relationship goes a long way in ensuring sustainability of businesses even during tough situations. Businesses are realizing this aspect and are using technology as an aid to improve relationship.

One of the prerequisites to having a healthy supplier relationship is to ensure proper information sharing among both the parties. Technology provides the platform where both the buyers and suppliers can share information in the simplest way possible.

Buyers should also monitor the performance of the suppliers at regular stages so that suppliers who meet the set goals are promptly rewarded for their effort which motivates them to continuously improve their performance.

Glenn Farrier - About Author:
The author of this article has expertise in Spend analytics. The articles on Supplier Relationship Management reveals the author’s knowledge on the same. The author has written many articles on Procurement Performance as well.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/business-articles/spend-analytics-and-supplier-relationship-management-at-times-of-uncertainties.htm

Related Business Articles Subscribe to RSS

POS management system – helping businesses as well as its customers
Published by Diego Hall on December 2nd 2011 | Business
POS management system is a technology that helps not only businesses but its clients or customers as...
 
Strata management solution and benefits
Published by Chris Whelan on February 29th 2012 | Business
Previously people didn’t face such difficulties during dividing their property or acquiring their ...
 
Zodiac Solutions Inc- Making effective management your criteria for growth
Published by Rahul on July 24th 2012 | Business
To help your organization’s success stay constant even in the times of economic slowdown, there ar...
 
Mistakes to avoid while choosing property management North Shore companies
Published by Jack on August 15th 2012 | Business
Choosing the best property management North Shore company is not an easy task. Learning more about t...
 
The Importance of Letting agents and Residential property management Dublin
Published by Leslie Hoffman on January 14th 2012 | Business
Hiring experienced letting agents and residential property management Dublin is extremely important ...
 
Strategic management of physicians’ day-to-day operational issues
Published by Jacob Thomas on November 29th 2011 | Business
Unlike physician practices of yesteryears, physician practices today have found themselves surrounde...
 
Handle all aspects of property with Dallas property management companies
Published by James Blee on June 9th 2012 | Business
Dallas property management companies are one of the reputed names in handling all aspects of propert...
 
Versatile restaurant management systems available online
Published by Vem Call on May 24th 2012 | Business
In today's competitive hospitality market, meeting a customer's expectations is imperative in order ...
 
Financial management of a small business
Published by Adam Walker on April 11th 2012 | Business
Small business owners tend to many times think that it is best to do all the work by themselves. Tha...
 
Supply chain management is incomplete without pick and pack services
Published by Diego Hall on December 15th 2011 | Business
Pick and pack services are integral parts of a business. These services are so crucial that they can...
 
Some advantages of the fulfilment houses and the stock management companies
Published by Diego Hall on January 9th 2012 | Business
A business can only be successful enough when it is dealt professionally in terms of stock managemen...
 
Advantage of Joomla for a content management system
Published by Roney on February 7th 2012 | Business
Joomla hosting allows users to keep track of each part of the website content users are more or less...
 
Off-site records management is always a more secure option
Published by Nancy Deholla on January 13th 2012 | Business
Document and records management provided by an external source is the most secure option for busines...
 
Outsource stock management and order fulfillment to make your work easier
Published by Diego Hall on December 15th 2011 | Business
A business has many parts and taking car of each part single handedly is impossible, hence outsource...
 
Spend analytics and Supplier relationship management at times of uncertainties
Published by Glenn Farrier on March 7th 2012 | Business
With globalization, businesses are spreading their presence all across the globe. This also brings w...
 
The Katale Partnership are without question leading management consultants
Published by Julia Roger on March 23rd 2012 | Business
Are you looking to improve your business practices so that your business can function better as a wh...
 
Steel Beams- Choosing a reliable supplier
Published by SteelBeams on August 8th 2012 | Business
Looking forward to construct a building? Well, steel beams are one the most important thing that you...
 
Contractor Expenses – effective cost management
Published by Crowin Smith on April 3rd 2012 | Business
Managing a business is a hard task when the world economy is not creating the right condition that f...
 
Outsourcing Payroll management services for small business in Delhi NCR
Published by Webin Lee on March 6th 2012 | Business
It is cheap to outsource the Accounting and Payroll services from the payroll management company rat...
 
Services Offered by Property management Sioux Falls Companies
Published by Julia Roger on May 25th 2012 | Business
The Property management Sioux Falls companies are the most famous names in business. They have earne...