Integration between the organization, customers and suppliers to be competitive

Faced with increasing competitive pressures and more open global opportunities supply chains of production companies have become more complex. Over the past decades, effective and proactive supply chain management is no longer a purely operational issue to become key to business success factor. To generate and sustain profitable growth is vital that ensures an extremely agile supply chain. Both manufacturers and retailers must recreate their thinking to supply their customers across multiple channels. Since the last decades has shown that competition has gone from being among companies to be among their supply chains, in order to be competitive, companies have looked for integration strategies that allow chain improvements.

Taking into account that the supply chain includes from obtaining products from suppliers until it reaches the consumer, and must have not only material but a flow of information in both directions. The importance of the supply chain not only includes the operating result, but the results achieved through its strategic integration, which should achieve a vision of the flow of materials and information in internal and external processes of the organization. The supply chain is an important step in the development of logistics element for all industries, can improve efficiency and effectiveness in the transfer not only of products but also the exchange of information between the different levels of the chain.

Today, organizations must develop their business models taking into account in its relations with suppliers and customers, with a vision greater than the structure of the company, recognizing the best way to compete is to make integrated and collaboratively improving their quality, delivery and performance while simultaneously reducing costs. It is key to success in managing the supply chain effectively integrate business functions and participants in the chain so that the processes are aligned to achieve the overall objectives. In this sense, the current logistics trends require that companies integrate with their suppliers and customers, to compete between networks and not independently, taking into account the potential need to work together in achieving strategic goals. Supply chains have a dynamic and multifunctional character and are composed of a multiplicity of companies and a variety of elements that must interact.

Relationship with customers

Companies currently pursuing its objectives to offer its customers better and better products prices than the competition, from their supply chains have sought mechanisms of information flow from the customer to the supplier, to incorporate the needs of customers design or adaptation of products or services they offer. Effective collaboration agreements between companies, suppliers, and customers are powerful tools for organizations to remain competitive in today’s business environment, which should increase efficiency, access new resources and tools to enter new markets. The relationship with customers is a priority for business competitiveness, since through the flow of information can strengthen the ability to respond to demand, the integration of the supply chain with customers that are the subject of the market, exceeds limitations of individual enterprise, maximizing customer value throughout the chain, which in turn will maximize the value of the organization.

The final consumer demand is the beginning of process operations and supply chain that consumer satisfaction is the result. To build this production process and expand markets information flow must fully operate from customers to suppliers. This information flow is fed from experience, requirements, customer requirements and the need for modernization. Companies must have all the interest to create a functional network, which shares with all stakeholders in the supply chain: information, processes, technology that enables efficiency and greater benefits for consumers. Finally, competitiveness is reflected in the ability of the supply chain to supply efficiently to customers, products and services that meet their needs or even exceed their expectations.

Distribution Center_david kiger_supply chain management_customers and suppliers
Image courtesy of U.S. Department of Agriculture at Flickr.com

Relationship with suppliers

It is necessary to develop a supply model in companies that integrate the management of relations with suppliers, to go from selection to evaluation, and based on the information obtained, the organization can make decisions concerning the needs to be met and implement procedures to recognize suppliers which offer better guarantees for the acquiring company.

Although suppliers are outside the company, are an essential part of the supply chain and are those through purchasing management can deliver the best organization price, quality, innovation, flexibility in inventories and even leverage through forms or payment terms. From the above it can be concluded that supplier management is a valid strategy and could generate benefits for an organization; since being the first step of the supply chain can dynamize it.

In conclusion, in the supply chain are different stakeholders; in addition to the organization, are customers and suppliers, these have in common not only raw materials or products but rather information in both directions and are integrated to achieve different purposes. It is concluded that the management of the relationship with the customer and suppliers plays a strategic role in facilitating the effective integration of the supply chain. For this reason, organizations should develop their business models with an integrative and collaborative approach, so that the processes are aligned to achieve strategic objectives.

To read more about supply chain management, visit my post: How to evolve your supply chain management.

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