Supplier Management is a topic that can either be built up in a minimalist way and thus it fits on one page in a book. Or you can aim at exactly the other end and fill several hundred pages with the topic.
Since we don’t have that much time and inclination to write so much and you may not have that much desire (and time) to read so much about it, we are again looking for a compromise and keep a few points a little more high-level and a few points we will go deeper. We focus on Supplier Management in relation to Category Management.
We certainly do not mean to say that the other points are not relevant, but they are only of secondary importance for our topic here. And other authors also want to write books. In addition, we have considered that there are too many points that are extremely industry-specific in supplier management. We cannot cover that here. So also here, rather general aspects.
And so we are already in the middle of the topic. In the previous chapter we wrote about buying channels and their characteristics. And in order for these buying channels to work properly, the right supplier management is also required.
Master or Reference data
Let us start with some common ground: master data. And unfortunately, this is also a topic that is often neglected. Especially in ordering systems with different buying channels, however, it is all the more important that the master data for a supplier is correct. And this does not mean the address or bank details. Of course, this data is also important. Otherwise, accounting will be sour, and nobody wants that. But we are more concerned here with the correct contact data for order submission or contacts for the Quick RFQ.
Supplier Classification
Of course, master data includes a lot more. The correct payment term should be stored in the master data as well as a contact person or the correct bank details (see Accounting) or a supplier classification.
This can and will certainly vary from company to company. Either because other terms are used or because there is a different definition. We tried to collect a few classifications and define them:
- Strategic Supplier
- Key Supplier
- Sole Supplier
- Specialized Supplier