This can be done through clear communication, a set of agreed upon objectives to work towards, ensure that regular meetings are held in order to address any complications and progresses that are being made. Following these steps may seem obvious, but this can also be a time consuming until you are able to integrate this effectively into your strategy. This helps to build a stronger supplier relationship and will have long-term benefits for all involved.
If we take a look at Targets mistake of launching the toddler sized Barbie SUV country-wide, the problem they faced was that their distribution centers were receiving inventory faster than they were distributing it to stores across the country. This meant that there were Target stores that had empty shelves with none of the promised items in store. They attributed this to inconsistencies between actual inventory and the computer records. A mistake like this will have cost millions in revenue loss, but also detrimental to both Target and Barbie. As a supply chain manager, it is up to you to ensure you suppliers and distribution centers operate on the same system to mitigate risks like this occurring.
If we take a look at Walmart, despite the precision and technologically advanced supply chain management system, they are continuously failing to restock popular products creating a disruption between the customer and their brand, also resulting in revenue loss. They have attributed this to a shortage of staff within their distribution centers, with not enough people to manage the vast amounts of inventory coming and needing to go.Implementing these supply chain solutions effectively will assist in alleviating some of the challenges and pressures that are experienced on a daily basis. These solutions should enable you to keep up with global trends and remain a strong competitor within the industry. Do you have any thoughts or experience on specific supply chain solutions that have had impact on your supplier relationships?