Manufacturers: View your suppliers as valuable (data-sharing) partners
As manufacturers deal with inflation and figure how to maintain profits, collaborating and sharing information with suppliers can produce better results than demanding lower prices from them, writes Costas Xyloyiannas, CEO of HICX, a supplier experience management platform.
With inflation hampering product sales and price rises, manufacturers have profits to protect. Many will react, as the sector has done for decades, by beating down their suppliers on price.
All this does, though, is bounce the problem around the supply chain. It drains suppliers of the resources they need to deliver vital enhancements — including supplies, information, and ideas — which brands require to be competitive.
So, how can manufacturers protect profits while keeping clear of significant risks and open to new opportunities?
By helping their suppliers be data-sharing trading partners, brands can keep a competitive edge despite inflation.
1-See suppliers as collaborative partners.
The best thing brands can do to cut costs through suppliers is to partner with them through collaboration.