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title: Supplier Management Best Practices to Follow in 2021

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# Supplier Management Best Practices to Follow in 2021

Do you know effective procurement can enhance customer experience?

Look at it this way – unless you receive the goods on time, you can’t proceed further. If the supplies are not delivered on time, it will result in late deliveries, which will affect customer experience and sales. So, while focusing on customer relationships, you have to focus on supplier management too.

Supplier management maximizes the business performance by automating all the processes. It streamlines the entire supply chain activities.

Let’s understand what it means and how it works.

![](https://i.imgur.com/eHtP5IV.png)


**What is Supplier Management?**

In simple terms, supplier management refers to all the processes and activities related to suppliers. It includes identification, performance evaluation, compliance, management, and contract negotiation.

Supplier management is the relationship between buyers and suppliers. Like CRM, it helps build a strong relationship with those who supply goods and services to your business. But there’s a difference. CRM helps you connect with all the customers. Here, you can invite global suppliers to be part of your network and then filter them based on your requirements.

An effective solution helps you understand your investment and the output. Here’s how:

You invite the global suppliers to be a part of your network.
Evaluation starts. Based on your requirements and their performance, you select the supplier/s.
You welcome them onboard, discuss the contract, and track their performance.

Well, you could say that this is easy and can be manageable. But is it? You need a supplier management solution. Let’s find out why.

Original Source: https://www.crmjetty.com/blog/supplier-management-best-practices-2021/
