Companies need to accept accountability for their end of the process.This can enable both parties to work together to achieve lower production costs that benefit everyone. Another important step is to build two way relationships with the suppliers.With proper understanding, a supplier’s importance to the process can be evaluated The first step is to evaluate the cost and the value of the entire supply chain.Some strategies that can be employed to this end include: Given the importance of suppliers to the entire value chain, it is in the interest of companies to create and maintain good supplier relations. They essentially act like domestic wholesalers/distributors for these products. Importer: These suppliers will purchase from international sources and sell to local retailers.Independent Suppliers/Craftspeople: These people manufacture unique items in small quantities and provide them exclusively through representatives or trade shows.These products may be made available at higher prices than if bought directly from the manufacturers, but this allows purchases to be made in smaller quantities than a manufacturer will be willing to supply. Distributors & Wholesalers: These types of suppliers purchase products in large quantities from different companies, store these goods and eventually sell to retailers.Conversely, if the manufacturer has important expertise or no competing producers, they will have significant say in the value chain. If the parts supplied are generic and have easily available alternates, the manufacturer will have less power. Manufacturers: Manufacturers are producers of either the entire product or components that feed into the end product manufacturing process.Depending on the industry, there are different types of suppliers.
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