In many businesses, supplier management is overlooked. Constantly focusing on the relationship with key suppliers, underpinned by suitable performance management metrics, leads to long and mutually beneficial relationships. Additionally, supplier management needs to be constantly developing processes, systems, quality and products to ensure the aims of the businesses are met.
We help businesses to constantly build and develop their relationships with suppliers through supplier management programmes. They focus on the key requirements of the business, ranging from supplier assessment, cost reduction, quality improvement, process development through to new product collaboration
Retailers, particularly multiples, collect products from suppliers’ factories or warehouses and negotiate a discount on the previously-delivered price for the products. This is a traditional practice that has recently become known as ‘factory gate pricing’. The premise is that the collection by the retailer is a cheaper supply chain option than delivery by the supplier. This can often be true, but equally it can prejudice the supplier’s distribution for its other customers. The key to FGP is to fully understand the supply chain costs on a customer by customer basis. Armed with this information, an appropriate solution can be designed. We help clients understand this level of cost breakdown and work out the implications of FGP.