The pandemic has tested supply chains to their limits and highlighted supply chain weaknesses, resulting in massive disruption to their operations. In fact, 94% of Fortune 1000 companies are seeing supply chain disruptions from COVID-19. However, as supply chains start getting back on their feet, many businesses are taking a long, hard look at their supply chains to mitigate the risk of future disruptions and ensure resilience for the future. Here are supply chain lessons that we can all take away from the experience and apply in 2021 and beyond.
Enable Blog — Collaboration
Businesses have long taken for granted supplier relationships, until the COVID pandemic forced all parties involved to immediately examine their relationships with suppliers. There are many reasons why it’s important to maintain a great supplier relationship, it not only makes daily operations more enjoyable, but it can also get you a better rebate deal, support greater collaboration and strengthen goodwill.
Strong supplier relationships are also key for businesses wanting to maintain growth and expand into new markets. A strong supplier relationship, is critical to the health of businesses, but how well do you really know your suppliers? Here are 10 ways you can improve your supplier relationships today.
The COVID-19 pandemic has left many organizations renegotiating contracts sooner than they envisioned due to the uncertainty in the marketplace and the changing conditions of business which, when combined, result in their trading partners being unable to meet the current deal terms.
Contract negotiation is a difficult exercise at the best of times, because a great amount of time and effort is spent up-front in negotiating B2B contracts, but due to the pandemic expediting contact renegotiations, these challenges have been magnified. For example, contract renegotiation will open up the possibility of having to agree to less favourable terms than before. We have also found that companies tend to file their B2B contracts away and very little attention is spent in understanding and tracking their on-going performance. Businesses that fall short of monitoring their B2B contracts fail to maximise revenues, control costs and open their organisations up to a multitude of risks for their deals. They are also in a weaker position during renegotiations as the true benefit of their current deal is unknown.
By looking at the wider picture when approaching contract renegotiations this will not only serve your interests better, but also improve collaboration with your suppliers. If you neglect the glaring issues, contract renegotiations in the wake of COVID-19 will mean missing out on new revenue opportunities for your B2B deals which could actually be the foundation to increase profits in the long-term!
In the supply chain and the rebate world, you will often hear the terms supplier and vendor used interchangeably when supply chain roles and duties are discussed. Even here at Enable we sometimes call supplier rebates, vendor rebates. They both supply goods and services, but there are certain attributes that make each one a distinct term in the supply chain world, which we will discuss in more detail below.
Companies around the world are shifting to global supply chains, which although allows companies to source materials and manufacture products more cost-effectively it comes with many challenges. It can make it more difficult to connect with the right people in the supply chain, resolve concerns, and respond quickly to changes and unexpected events otherwise known as supply chain disruption.
Businesses that plan together, succeed together. But whenever a business makes a deal with another business, it needs to be approved on both sides. And getting that approval can be a slow, inefficient process.
Negotiating B2B contracts is a regular activity, both sides want to get the best deal possible. By negotiating you can achieve a contract that is fair, reasonable and beneficial to both parties - even helping to boost company profitability and improve goodwill and collaboration between trading partners.
In a challenging environment, smart electrical distributors are finding new ways to drive profitable growth—not least, taking closer control of key trading agreements.
Collaboration is a process that allows a group of people to come together and work towards the accomplishment of a common goal. In business, you and your trading partners share a common goal of achieving profitable growth, so why are many trading relationships adversarial or treated as an afterthought? With significant advancements in cloud-based workflows and file sharing technology, the opportunity for multiple parties to collaborate on a project using a single platform has never been more achievable.
Distributors and suppliers are both working towards the same goal, so what’s stopping them from working together?