In recent years, international value chains have been the predominant organizational framework for global trade and manufacturing. By improving a company’s efficiency, value chains allow businesses to provide more for less. The ultimate purpose of any business’s value chain is to gain a competitive edge through increased production and decreased costs. However, there are challenges associated with implementing them throughout an organization. These challenges involve implementing technological changes, such as better workflow, standardization efforts, and enhancements to suppliers’ production and control mechanisms (Dunn et al., 2004). Therefore, it would be in the company’s best interest to cultivate a supplier in the future to help alleviate the dilemmas and cut costs.
Marketing Alignment
Businesses that want to thrive in today’s globalized economy need to excel not only in terms of ideas but, perhaps more crucially, in terms of the company’s marketing strategy if they want to break into the global market. The capacity to control the link between supply chain management and marketing operations (SCM-M interface) has significant ramifications for each practice (Caridi et al., 2019). In a global supply chain setting, each business should utilize proper marketing orientations and methods for each different nation since each country will have its own rules on legislation, politics, and social norms. Thus, another criterion is whether or not the supplier is in line with the company’s marketing objectives.
Provider’s Expertise
Managing the supply chain is challenging, but it may be simplified by breaking it down into upstream and downstream components. There is a two-tiered payment process in place, with the retailer first making payment to the distributor, then the distributor making payment to the manufacturer for the items they have received. Supply chain managers must institute stringent controls and methods of record to prevent waste and payment delays and ensure that all parties comply with their legal obligations. The main objective is to select a supplier that will provide value to the supply chain, as the approved supplier will become an integral element of the company’s supply chain (Skoumpopoulou et al., 2014). Therefore, it is important to inquire about the supplier’s level and nature of expertise. A supplier’s level of experience is a good indicator of their level of competence, which can improve the efficiency of the upstream supply chain and ultimately benefit the project.
Sharing Mutual Goals
When referring to business practices, a “sustainable supply chain” describes a system that prioritizes long-term growth without compromising the environment. Sustainable supply chain management prioritizes minimizing waste to ensure that social and environmental concerns are not compromised during production. Nonetheless, it can be difficult for a company’s management team to grasp supply networks fully and how to use them to their advantage, which is why every part of a sustainable supply chain must represent these principles. When trying to match internal needs with external capabilities, it is crucial to have an in-depth understanding from the point of view of the specific supply company rather than the industry at large (Dunn et al., 2004). That is why it is important to work with a supplier that shares your commitment to corporate sustainability and makes it easier for you to achieve your sustainability goals.
Determination of the Provider
Once a waiting list is long enough, potential providers can be approached for a quote and sample, if needed. It is also crucial to give suppliers a precise overview of what the company needs, how often, and how much business it wants. Once the organization has the authorization, it should investigate possible suppliers while keeping priorities in mind. Although price is important, it should not be the primary factor in selecting a provider (Dunn et al., 2004). Cost-effectiveness may be represented in lower-quality items and businesses, which is not always the optimal long-term choice. Ensuring the provider can operate successfully at the allocated pricing can make the business industrially viable. It is initially the company that establishes the terms of services.
Reference List
Caridi, M., Lamberti, L., & Pero, M. (2019) Managing the supply chain management-Marketing interface. Bradford, West Yorkshire: Emerald Publishing Limited.
Dunn, S.C. and Young, R.R. (2004) “Supplier assistance within supplier development initiatives,” Journal of Supply Chain Management, 40(3), pp. 19–29.
Skoumpopoulou, D., Dewaele, D. and Vlachos, I. (2014) “Effects of the supplier selection process on post-contract supplier performance,” Journal of Supply Chain Management Systems, 3(1), pp. 2–13.