SAP ARIBA
“ Sure , you look for a supplier and ensure that they make the right product , the right parts , to the right timescale and right cost ,” he says . “ But now you have to look at what it actually means in terms of the actual cost to do business with that supplier .”
If a supplier has process inefficiencies or does not have the required integration capabilities in this ever-demanding environment of speed , then the buyer has to look at what effect that will have from a cost perspective .
“ Inefficiency for example , will bring inventory buffers into place to cover up a lack of proficiency in communications in the supply chain , which of course means added cost ,” says Schenecker .
This approach has changed the way in which buyers evaluate suppliers , with the quality and pricing of parts being equally as important as the ability to perform . Performance and performance measurement of suppliers has become as crucial than the supply itself .
156 May 2018