February 2022 Tracking business components like products, manufacturing costs, or materials can become complex if you are a business that sources different items from multiple suppliers. Along with monitoring orders and delivery schedules there is the matter of managing cost. Frequently, the same item or materials can be sourced from different suppliers so having the ability to see who has the most competitive pricing can often save your business money in the long run.
This is where supplier price lists are a useful tool that companies can use to compare pricing, and find the most cost effective solutions. Price lists used in conjunction with purchase to pay software, helps when creating purchase orders, updating pricing automatically as orders are created. Effectively saving time and labour costs created by researching and inputting costs manually.
Increase buying power
Cost management and buying power can be improved by using supplier price lists by providing an up to date or real time overview of purchase prices. Things like deals, price breaks, and discounts are instantly identified and can be applied to purchase orders. This can be extremely beneficial if special discounts or bulk order pricing has been negotiated with suppliers, making sure that the updated information is automatically applied.
Easier supplier on-boarding
Companies who frequently add new suppliers will be able to better on-board new companies when using supplier price lists. Integrating supplier information with an existing order management system means faster ordering, better engagement, and smoother integration. New supplier feeds can be instantly incorporated and product information can be optimised quickly. Reducing onboarding time means faster time to order and a frictionless integration of new information, helping organisations to foster better supplier relationships.
Superior client management
Relationship management is a skill needed between buyer and supplier as goods are purchased and delivered. Assessing suppliers ability to meet business needs and measuring their performance is a core component of the procurement and supply chain process. Having access to supplier pricing in a real time environment can lead to benefits within the relationship such as:
- Sharing cost information
Partnerships between buyer and suppliers can target total cost reductions. Affecting areas like delivery of service or goods, and exploration of alternative components to reduce total inventory and gain other cost savings while maintaining quality specifications.
- Negotiating price reductions
Collaborating with suppliers and sharing financial goals can reveal substantial opportunities for lowering production costs or improving other supply chain segments.
- Preferred service levels
Based on the security of future orders and volume of business, top-level customers are often offered priority goods availability. Sometimes engaged suppliers might even develop their production capability at their own expense to better meet customer demand and secure future business.
- Technology and product innovations
Having a positive relationship with the supplier means that they may share information about new technology that will improve or support the supply chain process, or upcoming product offerings that may be a more economical solution.
Consolidation and efficiently improvements
Having a wide or diverse supplier base may mean that the procurement and supply chain process is fragmented and harder to manage. Supplier price lists that allow visibility of costs combined with good client relationships can help businesses to identify and engage key vendors to maximise opportunities and consolidate sourcing. This can help improve the efficiency of ordering and inventory and support companies in creating an effective supplier management process.
Supplier price lists can support more than just selecting the most economical vendor or reducing ordering costs. When used with an order management and accounting system they can support quality buyer-supplier relationships, reveal opportunities across the supply chain, and improve the entire business process.
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