Building Strong Supplier Relationships in UAE for Business Growth
Supplier relationship management is an integral part of every supply chain, no matter what part of the world your business is in. For companies in the UAE, supplier relationship best practices may be particularly crucial since the region is among the top importers in the world. Moreover, reductions in global trade barriers have made it possible for companies in the middle-east to source materials, goods and services from various top exporters in the world, like China, India, the USA and Japan.
If your business is established in the UAE, strong relationships with vendors across borders can help you scale up quickly. Supplier relationships in the UAE also impact the procurement supply chain in many ways, as outlined below.
Vendor relations in the procurement supply chain
Here are the key benefits of vendor relationship best practices for your supply chain over the long term.
- It encourages supplier-led innovation
- It results in cost savings by eliminating the need to set up new contracts
- It helps form partnerships with suppliers whose goals align with yours
- It strengthens your supply chain and reduces fragmentation of the product procurement
- It improves operational efficiency by eliminating shortages and maverick purchases
Five tips for building and maintaining strong supplier relations in the modern world
Building good relations with your suppliers is tough, and maintaining them can be tougher still. Nevertheless, here are some industry best practices you can adopt to boost your supplier relationship management.
- Keep the lines of communication open
- Understand what your suppliers offer
- Choose vendors whose offerings align with your needs
- Draw out detailed and precise contracts to eliminate ambiguity in your dealings
- Uphold your end of the contract and pay your dues on time
Digitization: The need of the hour to tackle challenges in supplier relationships today
Supplier relationship management can be fraught with issues like a weak SRM strategy, failure to align supplier-client priorities, poor communication between the parties involved and even trouble enforcing the contracts involved.
Digitization and e-procurement can be revolutionary game-changers here. With digital transformation elevating your SRM practices, you can screen suppliers more effectively and partner with the right vendors. It also facilitates better communication with your vendors and leaves little room for ambiguity in contract management.
Build and maintain supplier relationship with experts
Managing supplier relationships in the UAE is a continuous process that needs to be updated periodically to keep pace with industry best practices. An expert procurement and supply chain partner like Moglix can help you navigate this evolving requirement, leaving you free to focus on your core business. Know How