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Last updated on 2024年7月26日

You're striving to meet cost-saving goals. How do you manage a consistently late supplier?

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When your bottom line is at stake, managing suppliers becomes a crucial aspect of your business strategy. Especially when a supplier's tardiness is threatening your cost-saving goals, it's essential to address the issue head-on. Late deliveries can lead to a ripple effect of inefficiency and increased costs throughout your operation. Therefore, finding a way to manage a consistently late supplier is not just about maintaining a schedule; it's about preserving your company's financial health and operational stability.

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Svyatoslav Tsypin

?? Эксперт по слияниям и поглощениям (M&A) с 25 летним опытом | ?? Помогаю расти бизнесу путем покупки-продажи…

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Graham (Gray) Mitchell

SCM Practitioner (Senior Buyer/Group Procurement Officer)

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1 Analyze Causes

Before taking any drastic measures, it’s important to understand why your supplier is consistently late. Engage with them to discuss the issues they are facing. Is it a problem with their supply chain, workforce, or production capacity? By identifying the root cause, you can work together to find a solution that ensures timely deliveries without compromising the quality of the goods or services provided. Remember, communication is key in supplier management , and sometimes a little flexibility can go a long way in fostering a more reliable partnership.

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Svyatoslav Tsypin

?? Эксперт по слияниям и поглощениям (M&A) с 25 летним опытом | ?? Помогаю расти бизнесу путем покупки-продажи предприятий | ?? Знаю, как найти и приобрести лучшие компании | ?? Создаю идеальные сделки с ценными активами
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A comprehensive approach should be taken to optimize costs and manage delays on the supplier side. First of all, it is worth conducting a supply chain audit to identify bottlenecks. The implementation of predictive analytics and monitoring systems will allow you to quickly detect potential failures and minimize their impact. Consider building safety margins and implementing flexible delivery schedules to help smooth out supply fluctuations. At a strategic level, it is important to strengthen partnerships with suppliers, implement a system for assessing their reliability and consider alternative sources of supply to ensure a smooth process.

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Graham (Gray) Mitchell

SCM Practitioner (Senior Buyer/Group Procurement Officer)
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1) Consider risk by having a sole supply. If you are able to have multiple supply streams, you can manage the slippage better without the pressure of time-based delivery. 2) Understand the bottleneck, try to get involved to provide supply synergies to ease pressure on key supply. 3) Quantify the time-loss and build it into low services damages or penalty clauses. The best way to improve performance is to link it to profit - though a contract-based management.

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Uttam Waghmare

Sr. Manager @ Tata Motors | 20+ yrs in Supplier Quality Mgnt, Production Mgnt, New Project & Process Quality | Tacit knowledge in Engine & Vehicle Manufacturing | Expertise in ISO9001, IATF16949, LEAN, TPM, TQM, SixSigma
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Communicate Clearly: Discuss the issue with the supplier, emphasizing the impact of their delays on your operations and cost-saving goals. Set Expectations: Establish clear deadlines and performance metrics, and include these in a revised agreement. Explore Alternatives: Research and evaluate other suppliers who can meet your requirements more reliably. Negotiate Terms: Consider negotiating penalties for late deliveries or incentives for timely performance to motivate the supplier. Monitor and Review: Continuously monitor the supplier's performance and hold regular review meetings to ensure improvements are being made.

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Greice Fonseca

Compradora Latam | Analista de Suprimentos | Compras | Supply Chain | Strategic Sourcing | Compras de Materiais | Compras de Servi?os | Negocia??o com Fornecedores | Processo de Compras
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Você está se esfor?ando para atingir as metas de economia de custos. Como você gerencia um fornecedor consistentemente atrasado?

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2 Set Expectations

Clear communication of your expectations is crucial. You need to establish firm delivery dates and articulate the consequences of failing to meet these deadlines. It's not just about imposing penalties but also about creating a mutual understanding of how their delays affect your business. Let your supplier know that while you value the partnership, meeting deadlines is non-negotiable for the sustainability of your cost-saving plans. This might prompt them to prioritize your orders or improve their time management.

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Nilceia Da Silva Moreira

Compradora/ Gestora de Suprimentos / Adm de empresas/ Coach
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Prazos s?o de extrema importancia no setor de compras, ent?o no momento da compra é necessário cuidar dessa negocia??o e deixar bem claro da importancia dessa fidelidade. Quando o fornecedor entende isso o negócio flui sem motivos de penalidades.

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3 Implement Penalties

If discussions and setting expectations fail to yield results, it may be time to implement penalties for late deliveries . These should be outlined in your contract and could include discounts on late shipments or compensation for any losses incurred. It's important that these penalties are fair and proportionate to the inconvenience caused. They serve as a tangible reminder to your supplier that punctuality is essential for maintaining a profitable business relationship.

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Nilceia Da Silva Moreira

Compradora/ Gestora de Suprimentos / Adm de empresas/ Coach
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Contratos s?o importantíssimos para se colocar regras, pois no momento que se tem um atraso que vai te prejudicar tem como usar a cláusula de penalidades para que o fornecedor entenda que ele tem um dever a cumprir, assinado em contrato. Quando n?o se tem um acordo, é essa alternativa a ser executada, para sempre se atentar a prazos.

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4 Seek Alternatives

While loyalty to suppliers is important, your ultimate loyalty is to your business's success. If a supplier cannot meet your needs consistently, it’s prudent to explore alternative options. Researching and vetting new suppliers can be time-consuming, but it may be necessary to ensure that your operations run smoothly and cost-effectively. Be sure to have a list of potential suppliers ready, so you can make a quick switch if required without disrupting your supply chain.

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Nilceia Da Silva Moreira

Compradora/ Gestora de Suprimentos / Adm de empresas/ Coach
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Fornecedores, geralmente, s?o bastantes acomodados, depois que conquistou o cliente e por muitas vezes esse comodismo acarreta atrasos, por saber que a empresa precisa do produto ou de algo que ele proporciona, porém para n?o ficar preso a fornecedores e a empresa ser prejudicada em servi?o ou produ??o, é necessário sempre ter vários fornecedores, que possa te atender num momento de precis?o. O importante é sempre ter novos fornecedores e nunca descartar um fornecedor porque já tem um grande parceiro, nunca se sabe o que pode acontecer a qualquer instante. Pois a economia é imprevisível e várias quest?es podem acontecer.

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5 Foster Partnerships

Building strong relationships with suppliers can often lead to better outcomes than punitive measures. Consider investing in partnership programs that help your suppliers improve their processes, which in turn can lead to more reliable delivery times for your business. This could include joint planning sessions, sharing best practices, or even co-investing in technology upgrades. Such partnerships can enhance trust and cooperation, leading to better performance and cost savings.

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6 Monitor Progress

Once you have addressed the issue of a late supplier, it is important to monitor their progress closely . Set up regular check-ins and review sessions to ensure that improvements are being made and that deadlines are being met. If you notice positive changes, acknowledge them. This not only reinforces good practices but also shows your supplier that you appreciate their efforts to meet your expectations. Consistent monitoring helps keep your supplier accountable and your supply chain running smoothly.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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You're striving to meet cost-saving goals. How do you manage a consistently late supplier?

1

2

3

4

5

6

7

1 Analyze Causes

2 Set Expectations

3 Implement Penalties

4 Seek Alternatives

5 Foster Partnerships

6 Monitor Progress

7 Here’s what else to consider

Supplier Sourcing

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You're striving to meet cost-saving goals. How do you manage a consistently late supplier?

1

2

3

4

5

6

7

1 Analyze Causes

2 Set Expectations

3 Implement Penalties

4 Seek Alternatives

5 Foster Partnerships

6 Monitor Progress

7 Here’s what else to consider

Supplier Sourcing

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感谢您的反馈

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