Challenges Faced in Buyer Supplier Relationship Management

One of the most looked through-relationship in a business is the one you have with your vendors. For a business to deliver highly satisfactory services, it is important to have a streamlined workflow starting exactly from the vendors. Delays, gaps and miscommunications can lead to a subsequent pause in deliveries, hampering your overall business rapport.

While you can always keep a close eye on your in-house processes, dealing with third parties isn’t as easy. There are always some unknown gaps that your business has to come across on a day-to-day basis.

The source of error resulting in conflicts could be anything. Understand and rectify the conflicts to their exact necessity to ensure smoother processes.

Here are the top 10 Challenges faced in any buyer-supplier relationship management and how they can be resolved:

Overlooking Their Industry’s Business Culture

Belonging to a different culture may give rise to different views and interpretations while having the same conversation.

Burdening the Already Over-Burdened Suppliers

Suppliers deal with many organizations at once. Often the order is delivered late by the supplier because of the unavailability of the product. These types of late deliveries can weaken the relationship. Forecasting the requirements of the company can help in running the SRM process smoothly.

Non-Transparency in Processes

Many times, the non-transparency of the supplier’s process creates gaps in the company-supplier relationship. Technology can play a crucial role to fill this gap. Analyze the whole process more efficient by using an online purchase order and invoice management tool like Invoicera.

Inefficient Supplier Training

If the supplier doesn’t understand, what the company wants its customers to experience through their products, he won’t be able to provide enough supplies. One should make sure that the supplier knows the company’s motto. They should be given appropriate training to ensure expectation levels.

Create a comprehensive knowledge base that can train your suppliers on each of your different processes. If you are a corporate with a huge network of suppliers, you may also consider setting up a website exclusively for suppliers to learn the processes and coordinate with your internal teams for supplies. It doesn’t cost a lot to set up such a platform with the help of website builder tools.

Communication Gap

Communication is absolutely necessary for many aspects of the business. If a supplier doesn’t understand the company’s strategic goals that may fulfil the needs and requirements due to poor results. Maintaining good contact with the suppliers can benefit the organization in a big way.

Conflicts Over Contract

Signing a biased contract can be very unpleasant for the supplier. One should make sure that the contract has benefits for both the sides. A contract must be reviewed very carefully before it gets finalized.

Avoiding The Need To Nurture

A healthy relation only nurtures when the two sides stay together for long.

Abandoning the suppliers at the time of success may create stress in a relationship. To avert this, one should include the supplier at every milestone and success celebration of a company.

Invoicera is an Online Invoicing Tool that Provides a Host of Features to Effectively Manage Buyer-Supplier Relationships:

Invoicera offers an array of features to ensure the convenience of management and precision with data. Now, no more hustling around and wasting your precious time with little executions that can be automated easily.

• Send and Schedule Invoices to the buyers on time.
• Buyers can send purchase orders in a timely manner.
• Suppliers can send in estimates for buyer approval.
• In the case of a price settlement, the buyer can send inappropriate credit not.
• The buyer can get a free log-in to access all invoices and account statements online.

Opt for Invoicera to manage your account payable and receivable effectively. Keep a record of all your finances and invoices together in cloud-based accounting software. FREE SIGN UP.

SOURCE : Top 10 Challenges Faced in Buyer Supplier Relationship Management