How to Improve Supplier Relationship Management

At a quarterly review, a packaging supplier brings up a recent launch. The buyer needed a firm delivery date for the cartons. The supplier needed the final artwork before it could reserve a production slot. Both teams had something the other needed, and neither shared it early enough.

So how do you improve supplier relationship management when the problem isn’t the contract or the scorecard, but the handoffs between teams? Start with a relationship that matters. Agree on what each side can change. Then use the next round of orders to see whether it actually worked.

Six Ways to Improve Supplier Relationship Management

1. Prioritize Suppliers by Business Impact

Look at spend alongside the supplier’s role in your operations. Ask what the supplier provides, which products depend on it, and how long it would take to qualify another source. A supplier can be important to a product line even if its share of your purchasing budget is modest.

Think about cartons made for a specific filling line. The dimensions need to work with your equipment, and the printed artwork needs approval. A change of supplier would involve sample testing and a production trial. That makes this relationship a candidate for closer planning around launches and changes.

Review routine purchases periodically. For the carton supplier, bring in production planning and packaging engineering when you discuss a new design or volume change.

2. Agree on Shared Goals and Responsibilities

Choose a goal that both teams can influence. For the next launch, the buyer and carton supplier might aim to confirm delivery dates before the production schedule is set. Work backward from the date you need the cartons and agree on when each decision needs to happen.

Your packaging engineer owns the artwork approval. The buyer sends the approved revision and updated purchase order through the agreed channel. The supplier planner checks the production slot and confirms the delivery date. Give each step a named owner and a due date so people know who can make the next decision.

Check the timing with the supplier before adopting it. If their planner needs two working days to confirm a slot, build that window into your schedule and bring the dates to the next review.

3. Build a Two-Way Supplier Scorecard

Use a few measures that show how both sides contribute. Start with the outcome you care about and add measures that help explain it. For the packaging team, delivery performance is the outcome. Order confirmation and artwork approval are two steps you can review alongside it.

Agree on the source records and how to treat changes to promised dates. Use the same counting rules across periods. Check the order mix and review the approval and acknowledgment records before deciding what may have contributed.

4. Ask Suppliers for Feedback on Your Buying Process

Bring one recent order to the conversation. Ask the supplier to walk you through it from the moment it arrived. Try a specific question, such as “What information would help you confirm this order sooner?”

The carton supplier might say that their planner receives the quantity change in one message and the artwork revision in another. The buyer can send them together, with the purchase order number and the first delivery that uses the new artwork. Ask the planner to confirm that this gives them what they need to book the run.

Make room for feedback in the next review. Ask whether the revised process fits their team’s work and whether another small adjustment would help.

5. Turn Supplier Reviews Into Follow-Up Actions

At the review, pick one scorecard result and look at the orders behind it. Trace the decisions and check what each team knew at the time.

For example, the buyer might agree to include the artwork revision on the next five changed carton orders. The supplier planner will confirm receipt using the same order reference. Record the names of the two owners, the order numbers in scope, and the date you will review the results.

At the next check, look at the five records and compare them with similar orders. Confirm whether the revision was clear at the time of acknowledgment. If both teams can use the new routine, add it to the ordering instructions.

6. Run a Joint Supplier Improvement Pilot

Use the same review routine to discuss a joint trial. The supplier might propose a different carton arrangement on the pallet. Your receiving team can help test how it handles the new layout.

Try the proposed layout on one shipment. Agree in advance to check cartons per pallet, package condition on arrival, and unloading time under comparable conditions. Have the appropriate teams confirm stacking and weight limits before the trial. Write down who will inspect the shipment and how they will capture the results.

Review the evidence together before extending the change. If the layout meets the agreed requirements, document it and check another shipment. If the receiving team proposes an adjustment, incorporate it into the next trial.

How Procurement Software Supports Supplier Collaboration

Think back to the carton order. The buyer needs to see which artwork revision the supplier is working from. The supplier needs a clear place to check the order and share shipment details. Without a shared system, those updates live in email threads, phone calls, and someone’s memory.

This is where procurement software comes in. With the right configuration, procurement software can help buyers and suppliers view order details, confirm revisions, and track shipments in a shared workspace. Where the relevant workflows are connected, teams can use those records for invoicing and supplier performance reviews.

Support Your Next Supplier Improvement with Kingdee

All six steps come down to the same thing: both teams looking at the same order, the same revision, and the same shipment status. If you want to see what that looks like in practice, bring one workflow to a discussion with Kingdee. Kingdee Procurement Management supports supplier collaboration through a self-service portal. Depending on the edition and configuration, the portal can support purchase orders, shipments, invoices, and demand forecasts. Ask how these capabilities could support your pilot and connect with your existing processes. Request a demo using a practical buyer and supplier scenario from your business.

FAQs

What is the first step to improve supplier relationship management?

Choose one supplier whose work affects an upcoming business priority. Ask both teams to name a process they want to improve, then use recent transactions to agree on a starting point. A launch or seasonal order can give that conversation a clear focus.

How often should you review strategic suppliers?

A quarterly review is one option for a strategic supplier with steady activity. During a launch or a change in volume, you might add shorter check-ins around decisions that need input from both teams. Set the schedule together and revisit it as the work changes.

How can you collect useful feedback from suppliers?

Ask about a specific order, forecast, or approval instead of requesting a general rating. Give the supplier space to explain how the process works on their side. Agree on one action you can take, and check back after they’ve had a chance to try it.

How do you know if a supplier improvement plan is working?

Compare the same measure before and after the change using comparable orders. Review the transaction records and ask the people doing the work what changed for them. Use both views to decide whether to keep the approach or adjust the next trial.

This content is for informational purposes only and does not constitute legal, tax, or accounting advice. Product capabilities, availability, configuration, and applicable regulatory and compliance requirements may vary by edition, market, and implementation. Finance, tax, audit, and legal teams should validate obligations with qualified professionals and local authorities.