What is Supplier Management?
Almost every organization purchases goods and services from third parties, or suppliers. The outputs of one organization are often the goods and services that form aspects of other organizations’ goods and services. Therefore, how an organization engages, establishes, manages, and communicates with its suppliers is critical to success. However, even though how an organization manages its suppliers is a critical success factor, many organizations are regularly impacted by poor supplier performance and unpredictable supplier behavior. Fortunately, there are some simple things that every organization can do to improve the overall performance of its suppliers.
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