{"id":9582,"date":"2021-06-29T08:44:41","date_gmt":"2021-06-29T15:44:41","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=9582"},"modified":"2025-06-10T12:25:50","modified_gmt":"2025-06-10T19:25:50","slug":"how-procurement-leaders-build-strong-supplier-relationships","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2021\/06\/how-procurement-leaders-build-strong-supplier-relationships","title":{"rendered":"How Procurement Leaders Build Strong Supplier Relationships"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;9584&#8243; img_size=&#8221;full&#8221;][vc_column_text]<span style=\"font-weight: 400;\">In their list of common nightmare scenarios to try to prepare for, few procurement leaders could have predicted the <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2020\/05\/4-supply-chain-areas-to-examine-disruption\" rel=\"noopener\"><span style=\"font-weight: 400;\">business disruptions of 2020<\/span><\/a><span style=\"font-weight: 400;\">. Global pandemic and lockdowns probably didn\u2019t make it onto their bingo cards of potential disruptions that traditionally include rising customer expectations, volatile markets, fluctuating raw material prices and geopolitical considerations, among others.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Those procurement leaders with forward-thinking supplier management strategies that utilize digital technology fared better than others, according to QAD\u2019s Brent Dawkins in his <\/span><a target=\"_blank\" href=\"https:\/\/www.manufacturing.net\/technology\/blog\/21427710\/three-areas-of-focus-for-procurement-digital-transformation\" rel=\"noopener\"><span style=\"font-weight: 400;\">article<\/span><\/a><span style=\"font-weight: 400;\">, \u201c3 Ways Procurement Benefits from Digital Transformation\u201d in <\/span><i><span style=\"font-weight: 400;\">Manufacturing.net<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Brent discusses how now is the time for enterprises to redouble their efforts to upgrade their operations with digital technologies and innovations that improve sourcing and supplier management. For too many enterprises, obstacles to <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/digital-transformation\" rel=\"noopener\"><span style=\"font-weight: 400;\">digital transformation<\/span><\/a><span style=\"font-weight: 400;\"> persist.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Obstacles to Digital Transformation<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Planning for digital transformation and actually implementing it are two entirely different things. Multiple <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/documents\/campaigns\/namer\/digital-transformation\/busting-digital-transformation-barriers-white-paper.pdf\" rel=\"noopener\"><span style=\"font-weight: 400;\">barriers<\/span><\/a><span style=\"font-weight: 400;\"> prevent executives from achieving a fully digitally transformed enterprise, including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lack of vision at the top<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Unaligned executive priorities\u00a0\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Too many technology choices (AI, AR, blockchain, etc.)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Delayed results from a \u201cdigital readiness assessment\u201d<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Difficulties or delays in changing the operating model<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Organizational and\/or geographical silos<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Legacy staff resistance to change<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Shortage of digital talent needed to scale<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Insufficient budget<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Add to these barriers, decentralized processes and manually intensive procedures to identify and select suppliers and monitor supplier activity \u2013 optimal efficiency becomes a far-off goal.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">The Role of Adaptive ERP<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">QAD Adaptive ERP addresses issues <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2020\/03\/anca-streamlines-procurement-qad-supplier-portal\" rel=\"noopener\"><span style=\"font-weight: 400;\">procurement<\/span><\/a><span style=\"font-weight: 400;\"> teams face involving supply and sourcing decisions, supplier quality, and the means to improve integrated supplier activities. By integrating and connecting processes with suppliers, enterprises gain real-time data and insight into their supply base, better response rates to disruptions, and cost and quality control.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Finding the right ERP that creates strong supplier relationships is a must-have. Digital transformation for procurement processes with an <a target=\"_blank\" href=\"https:\/\/www.qad.com\/cloud-erp\" rel=\"noopener\">adaptive ERP<\/a><\/span><span style=\"font-weight: 400;\">\u00a0promotes modular <a href=\"https:\/\/www.qad.com\/blog\/2023\/02\/what-is-the-importance-of-supplier-relationship-management\">supplier relationship management<\/a> and eases the challenges of supplier selection and risk. Three steps to achieve improved sourcing and procurement via ERP are:\u00a0\u00a0\u00a0<\/span><\/p>\n<p><b>Eliminate manually intensive sourcing <\/b><span style=\"font-weight: 400;\">\u2013<\/span> <span style=\"font-weight: 400;\"><a href=\"https:\/\/www.qad.com\/blog\/2022\/04\/people-in-manufacturing-procurement\">Procurement professionals<\/a> spend too many valuable hours using manual processes to identify and select preferred suppliers. Spreadsheets, emails and guesswork complicate the sourcing process. When automated, sourcing can yield more efficient and accurate supplier selection at the best cost \u2013 procurement teams gain the ability to assess and compare suppliers and their offers by cost, quality, capacity and services. Enterprises are more competitive with a more standardized sourcing process that also includes supplier monitoring, governance and development.<\/span><\/p>\n<p><b>Boost procurement analytics <\/b><span style=\"font-weight: 400;\">\u2013 Procurement teams need more than historical data of spend analysis to gain future predictions. They need prescriptive analytics, <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/04\/data-is-the-new-gold\" rel=\"noopener\"><span style=\"font-weight: 400;\">real-time data<\/span><\/a><span style=\"font-weight: 400;\"> and artificial intelligence to fully understand spend behavior patterns, forecast future budgets and anticipate supply requirements.<\/span><\/p>\n<p><b>Evaluate the supply base<\/b><span style=\"font-weight: 400;\"> \u2013 The review and analysis of the supply base is an ongoing requirement for successful procurement teams. Repeated risk assessments and evaluations of supplier relationships yield a more integrated and efficient supply structure.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Where to Start<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Enterprises looking to improve their procurement and supplier organization activities should consider flexible supplier relationship management solutions for the best results. QAD Adaptive ERP is an agile and effective cloud ERP solution, providing the analytics and automation to address supplier and procurement challenges. Integrated supplier management guides enterprises to<\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/06\/integrated-supplier-management-plan-execute-and-adapt\" rel=\"noopener\"> <span style=\"font-weight: 400;\">plan, execute and adapt<\/span><\/a><span style=\"font-weight: 400;\"> to business disruptions. Find where your enterprise stands on the adaptability scale using <\/span><strong><a target=\"_blank\" href=\"https:\/\/www.qad.com\/integrated-supplier-management-diagnostic\" rel=\"noopener\">QAD\u2019s Integrated Supplier Management diagnostic<\/a><\/strong><span style=\"font-weight: 400;\"> tool.<\/span>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;9584&#8243; img_size=&#8221;full&#8221;][vc_column_text]In their list of common nightmare scenarios to try to prepare for, few procurement leaders could have predicted the business disruptions of 2020. Global pandemic and lockdowns probably didn\u2019t make it onto their bingo cards of potential disruptions that traditionally include rising customer expectations, volatile markets, fluctuating raw material prices and geopolitical considerations, [&hellip;]<\/p>\n","protected":false},"author":56,"featured_media":9584,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,199],"tags":[773,1709,1307,411,245,1333,632,1707,1044,179,1551,1332,1708,1696,1334,92,118],"class_list":["post-9582","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-manufacturing-trends","tag-adaptive-erp","tag-connected-processes","tag-digital-technology","tag-digital-transformation","tag-innovation","tag-integrated-supplier-management","tag-procurement","tag-procurement-analytics","tag-real-time-data","tag-risk-management","tag-sourcing","tag-supplier-management","tag-supplier-monitoring","tag-supplier-relationship-management","tag-supplier-relationships","tag-supply-chain","tag-supply-chain-management"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - 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