Make clear to your suppliers what the rules are

Suppliers Manual Sometimes you get the feeling your suppliers just do as they like. You're tired of acting on incidents and of re-educating your vendors.

Excellent and long lasting cooperation can only be achieved if both sides are well aware of each other's needs, wishes and special requirements. But what does your supplier actually know about your organization, your processes, your goals, rules and requirements? You told him a lot of course, but perhaps not everything. And certainly not to all of your suppliers. And what about your procurement colleagues? Do they all tell the same, full story? Are you really sure you know all requirements of your own organisations?

Finally some structure

When organizations grow, and procurement complexity increases, a supplier manual is an essential aid to get things structured. It tells all your suppliers, completely and unambiguously, what is needed if they want to have a successful cooperation with your organization. It may include topics such as:

  • How are you organised? Who does what?
  • What are the logistical requirements?
    • Order processing / EDI
    • Lead times and accuracy
    • Physical delivery
    • Damage, warranty, liability, etc.
    • Return goods
  • What are the commercial requirements?
    • Delivery of prices and conditions
    • Price Changes
    • Payment
    • Bonus Handling
    • Penalty clauses
  • Supplier Assessment
  • Social responsibility

Also internal clarity

The establishment of a supplier’s handbook has as positive side effect that the entire organization is forced to think about what it expects from its suppliers. This goes for the goods receipt department, ordering department, finance department, production, sales and the logistic department. This results in clarity and focus within your own organization.

Suppliers who receive the handbook, will have to confirm its receipt and that they accept its contents. Any problem issues can be discussed. One should no longer fear that your buyers give different instructions. If a supplier does not stick to the requirements, then he can no longer hide behind unawareness and excuses. For the buyer it is then easier, if desired, to impose penalties or sanctions.

Buynamics can help you to set up the manual. It can also take care of the manual from A to Z. Different languages are also among the possibilities. The choice is yours!

Interested? Contact us.