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Building Stronger Relationship s : Effective Approaches to Multi-Tier Supplier Collaboration A chain is only as strong as its weakest link—but what if you can’t evaluate the entire chain? Tier 1 suppliers and their suppliers—and their suppliers’ suppliers—make up an organization’s multi-tier supplychain.
While many manufacturers rely on ERP systems for procurement, these platforms are designed for broad business management rather than the intricate demands of sourcing, supplier collaboration, and cost control in a manufacturing environment.
It helps bring predictability to Strategic Sourcing, automates Transactional Procurement (or P2P cycle), and enables proactive Supplier Risk Management. Collaborating with the suppliers without any systems would mean wasting time searching through voicemails, printed documents, and email threads to locate the needed information.
When one link in the supplychain is shut down, the effect can be felt throughout the supplychain resulting in delayed or cancelled deliveries, closed ports, drastically unbalanced supply and/or demand. This is a major byproduct of globalization, as suppliers are increasingly international.
Here are the top 3 concerns likely to dominate the agenda for CPOs in 2025: SupplyChain Resilience and Risk Management Sustainability and ESG Compliance SupplyChainVisibility Conclusion: CPOs in 2025 will need to navigate a complex, fast-changing landscape shaped by technology, sustainability, and global uncertainty.
As businesses grow and scale, oftentimes, so does their supply base and the number of suppliers they work with. As you grow, you want to optimize your supply base. According to Industry Star, most businesses spend 80 percent of their cost of goods sold (COGS) with just 20 percent of their suppliers. .
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