Supplier selection that’s heavily oriented towards material prices frequently leads to complex, inefficient logistics chains. In many cases, higher total costs and lower flexibility in the supply chain are overlooked as a result.
Integrated supplier management involves active design, control and development of the supplier portfolio and supplier relationships. Including risk considerations in the supplier portfolio via critical value creation stages and conceptual on-site audits is the basis for real added value and high acceptance beyond the scope of Purchasing.
A successful supplier management process is characterised by proactive, cooperative collaboration and by strengthening selected suppliers based on active supplier portfolio management culminating in the development of partnerships. The benefits of this include higher quality, lower supply risk and therefore lower supply chain costs.