"Supplier management" refers to the process of identifying, selecting, evaluating, and managing suppliers or vendors in a company. The goal of supplier management is to establish and maintain long-term and strategic relationships with suppliers to ensure reliable supply of materials and services.
Typical functions of software in the area of supplier management could include:
Supplier identification and selection: The software assists in identifying potential suppliers and evaluating their suitability based on criteria such as quality, price, delivery reliability, and experience.
Supplier evaluation and performance: It enables continuous assessment of supplier performance based on key performance indicators (KPIs) such as delivery times, quality of delivered goods, responsiveness, and customer service.
Contract management: The software supports contract management with suppliers, including contract negotiations, contract signings, compliance with contract terms, and extensions.
Communication and collaboration: It provides tools for communication and collaboration with suppliers to clarify inquiries, coordinate orders, and resolve issues.
Risk management: The software helps in identifying and assessing risks associated with suppliers to avoid or minimize potential disruptions or shortages in the supply chain.
Compliance management: It assists in complying with legal and regulatory requirements related to supplier relationships, including environmental standards, working conditions, and ethical guidelines.
Supplier development: The software offers tools and resources to support continuous improvement of suppliers, including training, feedback, and collaborative innovation.