Supplier management is the process of assessing supplier performance, defining and setting expectations for quality and delivery, and maintaining supplier relationships. An effective supplier management program can help organizations improve quality and delivery while reducing costs.
The first step in supplier management is to assess supplier performance. This assessment should include an evaluation of quality, delivery, and cost. Once performance has been assessed, expectations can be set and suppliers can be ranked accordingly.
After performance has been assessed and expectations have been set, it is important to maintain supplier relationships. This can be done through regular communication, meetings, and reviews. By maintaining good relationships with suppliers, organizations can improve quality and delivery while reducing costs.