Good supplier management is essential for the continuity of your company’s activities, thus allowing greater productivity and quality in deliveries. Therefore, a complete analysis is necessary before closing the deal, to ensure the success of the partnership.
Therefore, in this text we have gathered everything you need to know about supplier control and how it can impact your textile industry.
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What is supplier management?
Supplier management goes far beyond choosing providers. Management is closely linked to the ecosystem processes that make up the relationship with suppliers. That is, it means managing and organizing the stages of the production chain related to this sector, such as management of raw materials, supplies, products, tools and equipment.
According to the Supplier Management document from the National Quality Foundation (FNQ), this control is part of any company’s business strategy. The importance of this sector is linked to the direct impact on quality production and the final price of the product supplied.
“Therefore, good management of the supply chain is essential, in addition to a good relationship, to maintain a competitive advantage in the market.”
It is worth highlighting that in Brazil alone, the textile industry has more than 24 thousand formal production units, according to the Brazilian Association of the Textile and Clothing Industry (Abit).
Still citing the FNQ document, supplier management is part of the business’ purchasing strategies. And the process of this administration, in a summarized and grouped way, consists of:
- Selection of providers;
- Supplier approval;
- Classification of partnerships;
- Performance monitoring and evaluation.
Furthermore, there are four types of strategy for this management. The first is Single Sourcing. This concerns the tactic of having exclusive suppliers for certain products and tools. Multiple Sourcing corresponds to the practice of having several suppliers for a single product.
Meanwhile, Global Sourcing represents the possibility of having international suppliers. And finally, the Supplier Network addresses the ecosystem made up of direct and indirect partners (those who supply their suppliers).
What are the benefits of this practice?
A specialized partner, with authority and credibility, is essential for a more productive and efficient performance in your industry. It is the direct bridge between what is produced and the tools needed to make it happen. Without competent delivery, delay and financial loss will occur.
Therefore, the benefits of good supplier management are related to these issues. With close organization, monitoring and evaluation of these partners, it will be easier to control delivery and avoid losses.
And of course, with administration and documentation of errors and breaches of contact, it will be simpler to identify those who were irregular and irresponsible. And thus avoid future hiring.
Therefore, in summary, the main advantages of good management are:
- Cost reduction;
- Less loss of inputs;
- Greater optimization;
- Improved productivity and efficiency;
- Reduction of unforeseen events;
- Predictive production;
- Improvement in final quality;
- More competitive prices.
Good practices necessary to apply this management model
Therefore, it becomes increasingly important to adopt greater control of textile suppliers. For a smarter and more agile industry, partners need to be present in several areas.
Those who think it is only necessary to pay attention to those responsible for delivering materials are mistaken. Suppliers in the textile industry are also present in the delivery of technological, agile and automated machines, equipment and tools, with the aim of improving production.
Below we have put together a list of good practices for you to select, manage and maintain a good relationship with suppliers in your industry.
Make a good selection of suppliers
The first good practice is to carry out market research. Select companies with positive recommendations and reviews. Look for those that are known for their competence, credibility and socio-environmental responsibility.
Then, make a list of the best options and analyze the legal status of each one. Check that there are no irregularities and that they operate in accordance with industry standards and laws.
Think about whether there is the possibility of visiting to analyze the environment. Take as much time as you need during the contact. This way, you will understand which one has consultative and quality sales.
Finally, be sure to negotiate to generate greater alignment between both parties.
Stay up to date with market demands and news
The textile industry is the sector that suffers most from market and consumer interventions and transformations. Furthermore, Brazil is one of the major players in this field. This directly impacts the implementation of innovations and trends to always be up to date with demands and news.
Therefore, it is essential to understand and plan this management. If your suppliers are not in compliance with industry standards and trends, your business will automatically be neither when you choose to enter into a partnership.
Furthermore, you need to be aware of seasonality, seasonal changes and fashion forecasts, for example. All of this directly impacts good management.
Invest in management technology
Just like any other type of management, technology is essential to assist in daily tasks. With the automation provided by administrative software, optimization is guaranteed.
The scheduling of activities and services becomes more efficient. To add to this, the software also allows for annotations and documentation of important information for efficient, data-based management. This helps generate insights and more intelligent and assertive control.
Pay attention to contracts
Management technology also facilitates greater care with contracts. It is necessary to pay attention to expiration dates to avoid delays in renewal and, consequently, in deliveries. As well as, to avoid legal problems.
To do this, it is necessary to carry out new analyzes of the next steps. How was the experience? Did the supplier make good deliveries? Does it continue to adapt to market news and trends? These and other questions need to be answered during the renewal assessment.
Carrying out these practices in a predictive manner allows your industry to always be on the move and not stop production.
Have good relationships
Last but not least, building good relationships is essential. To guarantee this characteristic, clear, direct, objective and empathetic communication must be maintained.
Good relationships generate lasting and successful partnerships. Transparency allows for more qualified work together that seeks satisfaction for both sides.
The important thing, at every moment of contact, is to carry out actions that complement each other. Therefore, one of the main objectives of your management is to maintain this relationship and grow the partnership.
Delta Máquinas Têxteis as a supplier
Delta Máquinas Têxteis is a company focused on the development of technological and quality machines, aiming at automation. We also offer consultancy on textile processes with the aim of adding value to your production and contributing more efficiently to the National and International Textile Industry.
We are specialists in the development and manufacture of textile machines, always seeking to optimize management, process quality and adaption to industry 4.0 concepts.
Therefore, our deliveries are increasingly intelligent, ensuring competitiveness and productivity at the lowest cost.
Become a Delta partner
This article demonstrated the importance of carrying out good supplier management to guarantee the success of your company and have good results in its production. Remember the need to carry out research before closing a deal to evaluate and select only those with credibility and authority in the market.
And if you want to understand how a partnership with Delta can deliver innovation for your industry, download our guide for free:
