Procurement Professional is the official publication of CIPS Australasia

Supplier visits crucial for best results

27 Jan 2010

Source: ADR International

Meeting your suppliers on their own premises is crucial in uncertain times – but for best results you need to know how to go about it, says Bill Michels.

As the global economy shows signs of recovery, your company may be healthy enough to start ramping up production, but do you know if all your critical suppliers are as ready as you are? Suppliers are suffering from extended terms and an inability to achieve bank financing. Layoffs also have reduced the experience of their workforce. These deteriorations have impacted suppliers across the supply chain. They are not willing to discuss these business issues with key customers out of fear such discussions will lead to additional cuts in volume.

Sometimes the only way to validate the soundness of your supply base is to make a formal, structured visit to suppliers. It’s tempting to dismiss these visits as a discretionary expenditure, but nothing could be further from the truth.

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