Monday, 9 September 2013

Importance of Supplier Management to Customer Relationship Management

In my last blog we have seen how Communication plays a vital role in effective Customer Relationship Management. In this blog we are going to see how supplier management has got same importance as customer relationship management in the growth of an Organization. As we all know unless we keep proper relationships with suppliers an organization will not be able to deliver the desired output on time which will eventually bring drastic collapse of an organization. At each stage supplier act as an input and customer act as an output so these two sectors always go together in any organization or business in general term. We have got an application dedicated for customer relationship management as well as for vendor management. Here we should make sure that the required raw material / finished part is captured effectively in the vendor management thereby getting more output in customer relationship management. So tool pertaining to Vendor Management should be efficiently handled to make sure we make the right decision while placing any order from supplier management which should tally with the market requirement. Excess or shortage will be a cost for the organization which has got negative result. An apt example for this if a medical shop vendor places an excess order for less moving medicine and shortage in large moving medicine will directly affects his business which will also bring down his business due to poor customer relationship management.
Customer relationship is not just handling the customer with efficient communication but to capture his exact need / requirement. As we know a business should move with the customer requirement and not with business requirement i.e. termed as Mass production which was practiced earlier. This is an important part of Marketing executive who should always keep themselves updated with the people's requirement thereby aligning the business accordingly. When this analysis is made efficiently then that the input will provide an efficient decision making when it comes to supplier management. An organization can provide a clear input to the supplier that we would require these many resource/ this quality of raw material in this mentioned time frame to keep themselves in line with this challenging market. Supplier management decision making requires the following input
1. Current market requirement analysis report.
2. Any new replacement opportunity i.e. bringing new model in the market.
3. Time in getting the raw material to time the it takes to reaches the market - Based on the current requirement decision has to be made.
4. Alternate supplier availability & logistic mode.
These are certain inputs that needs to be taken into consideration before making a procurement of raw material which should also carry the decision making report from higher executives. This would eventually make an organization to take proper supplier management decision thereby satisfying the customer needs. Supplier Management when it comes to agriculture requires a lot more decision making skill set along with time management. Unless a Farmer / wholesaler / retailer doesn't have proper time management along with market trend the entire business goes to a loss. Here time plays an even more important roles as the requirement is continuously growing without any reduction.
For every business supplier management should always go with proper decision making reports or frameworks thereby satisfying the customers needs. Customer will be satisfied with the product but getting that quality, availability on time, right cost make him a delightful customer that can be achieved only with this supplier management. How we can say that the supplier management is not efficiently management in our country? In our country every day there is loss in crores especially in agricultural product due to improper management of supply and demand. So in order to resolve these gaps there should be an analysis on the quantity of need of a specific product at a specific market thereby fulfilling their needs on time making them a happy customer. So the wholesaler has to see what is the requirement in the market then make a decision on the stock requirement thereby ensuring that the customer get the required product of the required quantity.
So it is a must in every organization to make a proper management of their supplier in line with the need of the customer thereby gaining a positive growth of an organization. In a way it is a must for an organization that getting more delightful customers depends on their supplier management. Supplier also should make sure that they deliver the requirement of an organization thereby they get more business which is very much applicable in software industries. So now we conclude that an organization should have an efficient, structured supplier management team who actually makes plans & categorize their suppliers according to market analysis report prepared by Marketing Team thereby giving much focus for the "need of customer" and not "as per the need of organization" 

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