Why do organisations need Supplier Management?

Today, organisations and their suppliers are striving to work together more effectively to reduce costs, react faster and improve customer service to create competitive advantage. Internal systems now tend to be established. The new challenge is to integrate these systems to external organizations in a controlled and secure manner. Using the Internet, it is possible to create an environment where trading partners can work together, effectively and securely. Supplier Management solutions bring significant benefits to any company that wants to improve its speed and flexibility through proactive management of its supplier base and sourcing processes. A new approach to business transformation, these collaborative solutions can deliver iterative results without the traditional pain of long development cycles. Effective Supplier Management however, can only happen in many-to-many collaborative environment that fully integrates both sides of the trading relationship, and allows all companies to implement their own processes.

What are the major benefits of Supplier Management?
Historically, Supplier Management between companies has been a challenge. The

maturing of the Internet economy, however, has made it possible for two or more companies to radically change the way they do business together. Supplier Management solutions enable companies to integrate their trading partners into their own systems and processes - creating, at last, a new "virtual" company. This means that many systems and processes can be shared, responsibilities reassigned and generally "people" as well as applications, integrated into common systems. Once

everyone is working from the same set of information - as a team - existing ways of working can be radically altered for the better. The benefits of Supplier Management include :

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Increased sales Increased profitability Reduced costs Increased productivity Increased customer satisfaction

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Faster speed to market Reduced administration Improved trading partner relationships

What is the difference between supply chain collaboration software and other technologies such as groupware and workflow?
Groupware products are designed to manage knowledge databases where collaboration between individuals, typically within the same company is important. Workflow products are designed for predictable business processes, usually dependent on high volume and inflexible outcomes. In both cases, the assumption is that collaborating parties (either within a business, or between businesses) adhere to a common business process. In fact, this is rarely the case. Supplier Management systems on the other hand are specifically designed to

handle reality - processes and people that are inter-dependent on one another are fluid and rapidly change, and these processes and people differ between different trading partners.

What kinds of companies will benefit most from Supplier Management?
In an increasingly competitive world, successful companies are looking to optimise all of their relationships with their trading partners to increase profitability. Vertical markets where Supplier Management is already paying off include retail, manufacturing and financial services. However, any company that has a supply chain to manage can gain huge benefits from Eqos Supplier Management solutions in the time it takes other systems to be implemented.

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