In business, relationships matter. The right connections definitely have a positive impact on your bottom line.
Many times, managers, directors, and executives focus their efforts on evaluating and improving customer relationships. If you are looking to improve cash flow within your company, however, you will want to take a look at another type of relationship as well: supplier relationships. With supplier relationship management (SRM), you will be able to evaluate your current arrangements and identify ways to save.
Our software has an SRM component that can help you better manage supplier relationships. As a result, you can improve cash flow for your organization by:
-Taking monitoring purchases to ensure that the best practices and guidelines you’ve established are being followed in all departments and in all locations – whether those locations are in the same building or across the country.
- Compare the costs of working with various suppliers so that you can either negotiate better deals or choose to do more business with one provider than others.
- Evaluate supplies in versus storage costs and production needs so that your company is not in a position that involves storing excess components well before they are needed for the manufacturing process.
What you will find is that by monitoring purchases, supply costs and storage, and the processes that you have put into place to manage them, you are able to focus on buying the right parts at the right time from the right supplier. By factoring these results into more general reports and ensuring that staff across all departments are on board and following established procedures, you’ll know that you are doing all that you can to reduce costs and save money.
As a result of using tools like ours with the supplier relationship management component, you will be able to access the business data you need and focus on what matters most: running your business.