Increasing Supplier Accountability
Retail businesses rely heavily on their suppliers to provide a range of goods and services that are essential to their operations. Goods-not-for-resale (GNFR) spending represents a significant portion of a retail business’s expenses and it is critical to ensure that suppliers are providing the products and services as agreed upon. Increasing supplier accountability in the GNFR space is essential for the success of a retail business.
There are several steps that retail businesses can take to increase supplier accountability in GNFR.
Clearly define performance expectations
It is essential to clearly define performance expectations for suppliers. This includes specifying the quality, delivery, and cost requirements for each GNFR item or service. Suppliers must understand the consequences of non-compliance with these expectations.
Make sure to select the correct suppliers
A robust supplier selection process is key to ensuring that the right suppliers are selected and monitored for performance. This process should include a thorough evaluation of the supplier’s financial stability, quality of products, delivery performance, and ability to meet the requirements of the retail business. This can help ensure that the supplier is accountable and able to meet the needs of the retail business.
Create a structured performance management program
Establishing a supplier performance management program is critical. This is a structured approach to monitoring and managing supplier performance. This program should include regular supplier performance reviews and the collection and analysis of key performance metrics such as delivery accuracy, product quality, and cost.
Keeping open lines of communication
Regular communication with suppliers is essential for maintaining a strong relationship and addressing any issues that arise. This communication should include both formal and informal interactions, such as regular supplier reviews, performance reports, and regular phone calls.
Rectify issues with an established process
Establishing a corrective action process is important. When issues arise, it is essential to have a clear and effective process for addressing them. A corrective action process should be established to ensure that suppliers are held accountable for any performance issues, and that they are given an opportunity to improve.
Building your tech stack
Leveraging technology can play a significant role in increasing supplier accountability. Solutions such as supplier performance management software and supply chain visibility platforms can provide real-time visibility into supplier performance and enable retail businesses to quickly identify and address any performance issues.
Regularly evaluate supplier performance
Finally, it is essential to continuously monitor and evaluate supplier performance. Regular monitoring and evaluation of supplier performance is critical to ensuring that suppliers are meeting the expectations of the retail business. This includes tracking key performance metrics such as delivery accuracy, product quality, and cost, and regularly conducting supplier performance reviews.
Improving supplier accountability is crucial for success
In conclusion, increasing supplier accountability in GNFR for retail is essential to the success of a retail business. By following these steps, retail businesses can improve supplier performance, reduce costs and improve operational efficiency. Retail businesses should prioritize the development of strategies to increase supplier accountability in the GNFR space.
About Lumatrak
Lumatrak’s PULSE software offers you tools that will help make sense of the chaos by connecting the processes, systems and communications supporting your purchases from the time of purchase to final delivery to your site.