Effective management of suppliers is first of all the supply relationship development, one is the relationship development of existing suppliers, through the cooperation with existing suppliers, the relationship with each other to re-evaluate, maintain, promote a series of activities.

To make the relationship between the two sides more and more stable and close, the other is the development of new potential supplier relations, that is, the development of new suppliers, selection, detailed investigation, analysis, business negotiations, evaluation and other activities to turn potential suppliers into formal suppliers of the process.

Suppliers are companies and individuals who supply a variety of resources needed by companies and their competitors, including the provision of raw materials, equipment, energy, labor and capital.

How their situation will have a huge impact on the enterprise's marketing activities, such as changes in raw material prices, shortages, etc. will affect the price of the enterprise's products and delivery, and will thus weaken the long-term cooperation with customers and interests, therefore, marketers must have a more comprehensive understanding of the situation of the supplier and thorough analysis of the supplier is a business negotiation is more of a partner in the rival.

The importance of supplier management:

1, reduce costs. Cost is the enterprise "eternal pain", according to U.S. surveys, in the U.S. manufacturing industry, procurement costs accounted for 40% -60% of the unit cost of the product or so, the proportion of procurement costs will increase with the centralization of the core competencies and the proportion of business outsourcing, and thus the supplier is directly related to the final cost of the product.

2, improve product quality. Willis and Huston 1990 study shows that 30% of the quality problems in the supplier, good supplier management can effectively improve product quality.

3, reduce inventory. The pressure to reduce inventory allows manufacturers to transfer front-end inventory to suppliers, which is not conducive to the establishment of partnerships. Supplier management can be coordinated inventory management.

4, shorten the delivery time. 80% of the product delivery time is caused by the supplier, shorten the product delivery time should start from the source.