How does striking the right relationship with your supply chain better your business?
An opportunity is often lost when we don’t understand the benefits of fostering good relationships with our supply chain. When we do establish these alliances, we have the chance to strengthen our business, bring new opportunities to various sectors and have a positive impact on the community. Here are 3 thoughts to remember when nurturing supply chain relationships:
- High-quality products from suppliers can improve the bottom line by minimizing waste and reducing cycle time.
- More efficiency will streamline back-office operations, including order management, fulfillment, invoices and even product curation.
- Good relationships with vendors lead to successful collaborations that will result in better product design and eliminate needs for redesign and re-engingeering.
Dell is a great example of a company that prioritizes its supply chain management. In the last fiscal year, they spent nearly $5 billion on minority- and women-owned suppliers. The company also diversifies other business owners by helping them land contracts with other clients. By refining its own operations and encouraging others’ success, Dell’s actions create bigger waves.
This isn’t to say we must break the bank to embolden our supply chain, but when you invest in your suppliers, the return on investment comes back to you and the impact on everyone becomes greater.
Read more about Dell’s diversification efforts here.