Reasons for reviewing existing Suppliers
Regularly reviewing and evaluating the performance of existing suppliers is extremely important in the Goods-Not-for-Resale (GNFR) space of retail.
There are several reasons why regular supplier performance reviews are important:
Identifying areas for improvement
Regular reviews allow a retail business to identify areas where suppliers may not be meeting expectations or where improvements can be made. This could include issues such as delivery performance, quality of goods or services, or cost.
Negotiating better prices
By regularly reviewing supplier performance, a retail business can negotiate better prices with suppliers that have a proven track record of meeting or exceeding expectations.
Identifying high-performing suppliers
Regular reviews also allow a retail business to identify high-performing suppliers that may be able to provide additional goods or services. This can help to diversify the supply chain and reduce risk.
Regular reviews also allow a retail business to ensure that suppliers are in compliance with relevant laws and regulations.
Maintaining supplier relationships
Regular reviews help to maintain good relationships with suppliers. It is an opportunity to communicate any issues and find ways to work together to resolve them.
Improving supplier performance
Regular reviews allow a retail business to track supplier performance over time and use the data to identify areas for improvement and drive improvements in supplier performance.
Regularly reviewing suppliers leads to a more profitable supply chain
In summary, regular reviews of existing supplier performance in the GNFR space of retail are critical to maintaining a healthy supply chain. By regularly reviewing and evaluating supplier performance, a retail business can identify areas for improvement, negotiate better prices, identify high-performing suppliers, ensure compliance, maintain supplier relationships and improve supplier performance, ultimately leading to a more efficient and profitable supply chain.
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