Supplier management is the process of selecting, qualifying, onboarding, and continuously monitoring suppliers to ensure they meet your organization's standards for quality, performance, and ethical practices. It involves a range of activities, including:
- Supplier selection: Identifying and evaluating potential suppliers based on their capabilities, experience, track record, and compliance with your requirements.
- Contract negotiation: Establishing clear expectations and terms for the supplier relationship, including pricing, delivery schedules, quality specifications, and dispute resolution mechanisms.
- Performance monitoring: Regularly assessing the supplier's performance against agreed-upon metrics, such as on-time delivery, quality conformance, and cost efficiency.
- Risk management: Identifying and mitigating potential risks associated with supplier relationships, such as financial instability, ethical violations, or supply chain disruptions..