Suppliers are entities that exist outside organization. Suppliers are also called vendors. Companies procure different raw materials and parts from their suppliers/vendors.
Supplier management is the process that oversees the activities pertaining to managing suppliers right from the beginning of interviewing them, auditing them, qualifying them, producing the materials, and evaluating their performance.
Effective supplier management consists of the following key tasks:
Establishing policies to govern suppliers
Agreed legal contracts between the company and its suppliers
Suppliers provide goods/services as per the agreed expectations
Alignment between Contracts with suppliers and business needs
Managing suppliers and their overall supplier performance
FactoryPROs Supplier Managements helps with the following key functionality:
Supplier health reviews