Maintaining Healthy Supplier Relationships

Maintaining Healthy Supplier Relationships

April 14, 2020

What or who does your company value the most—employees, customers, structural capital, or suppliers? Which one of these do you need to cultivate first to ensure growth of the rest? Find out.

What’s Important and What You’re Missing Out On

You have the best infrastructure in place, formidable human capital, and a decent portfolio of customers to keep your business running smoothly. These are the common factors of production that most organizations take great steps to retain for the longest time. Structural capital is not challenging to retain; however, both human capital and customers are portable and tend to change the financial dynamics of a company very quickly, based on how well they are managed.

Organizations are doing all they can to acquire and retain customers. In fact, this has become the sole focus for many, with social media and websites at 41% and 55% respectively, topping the major digital channels used by marketers for acquisition and retention (Invesp, Customer Acquisition vs. Retention Costs—Statistics and Trends ).

There is also greater emphasis on employee retention with companies experiencing increasingly high turnover. Management tactics and employee engagement programs are being designed to provide better onboarding and benefits packages in the hope that employees stay longer.

All these measures aside, the one thing that organizations have failed to effectively take into account is their relationship with suppliers and how that may affect their overall standing in the marketplace.

Suppliers are often viewed as peripherals that aid organizations in conducting business but do not necessarily boost revenues. What you need to realize is that suppliers are essentially the lifeline of businesses and critical to them running efficiently. Just think about it; all your business activity could come to a halt in case your regular supply of raw materials and other necessary resources for production are cut off.

How to Cultivate a Healthy Supplier Base

Maintaining healthy supplier relationships should be the prime focus for organizations looking to up their marketing game in a fierce, competitive environment. The simple solution to this would be to pay your suppliers on time!

Handling vendor invoices is tedious even for small enterprises. The obligation is not just to be on top of invoicing on a monthly basis but to make accurate payments. Incorrect data entry can result in over-or-under payments, both of which could cost the company monetarily and in terms of supplier relationships, respectively.

Technology has time and again proven to be an enabler in accentuating corporate standards in the marketplace with Gartner predicting a 40% year over year growth in application integrations driven by Robotics Process Automation (RPA)(Gartner Top 10 Strategic Technology Trends for 2020 ). This is a clear indication of what businesses need to do to elevate their growth prospects and hold their own in an increasingly aggressive market—invest in digital transformation technologies.

Intelligent Process Automation (IPA)solution is built on a platform of digital transformation technologies such as Artificial Intelligence (AI)and Machine Learning. The solution brings in an element of cognition for repetitive, rule based processes, so even when the so called standard, ‘belt-driven’ functions encounter a new, unfamiliar task, IPA adapts to the system by learning and applying previous user actions. The advantage with IPA is that your skilled worker is saved from spending countless hours matching POs to invoices and indulging in menial, unproductive work. IPA will do the job for you.

Start Getting Smart

Automate your vendor invoicing process, pay your suppliers on time. What this does is, apart from cleaning up your purchase-to-pay chain of irregularities, delays, and incorrect invoicing, it helps you concentrate on cultivating better relationships with your vendors. If success requires hard work, growth requires smartness. Intelligent Process Automation makes your organization smart.

On a final note, just watch this video to quickly get a glimpse of the immense capabilities of IPA and what it can do for your supplier base—video

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