Rahmi AYDEMİR
Business Development Manager
Aydemirler Inc.
Undoubtedly, when designing the production processes, we plan our quality costs to meet the needs and expectations of our customers and try to eliminate the existing poor quality in order to win customers’ satisfaction. However, the fact that all these production processes can be carried out perfectly related to the sustainability of supply chain management. “Supplier” who mentioned on the curriculum of Production Services; is defined as providing to company’s products or services, inputs, raw materials, services. Similarly, supply chain management is described as the synchronization of the processes of the customers and suppliers of the company in order to harmonize the flow of information, services and materials. The sustainability of all this flow is the ultimate goal of the firm. The measure of success at this point is proportional to the ability of the firm to manage its supplier relationships in a healthy way.
Of course, not only the cement sector, but also the approach to supplier relations in all sectors and the management approach are the result of the background work that also reveals the situation of the product that the firm reaches. In this article we will discuss well-known mistakes in the sector and the country’s well-known economic future that do not create trust.
Cement sector, as we know, is like a gold mine in Turkey in terms of production and sales. Considering the 4% increase in sales according to the official numbers announced in the last days of 2017, we will not get difficulty to understand why the industry has bring up to its agenda the investment plans for increasing the facilities and capacity. As a result, it is anticipated that many more new players are possible to come in on the sector.
However, since fluctuations in the country’s economy directly affect domestic sales, producers do not get late implementing emergency saving plans. Due to the flow production system, in the sector containing many consecutive items, when the expectations in sales decrease the first way leading to cost reduction pass through the suppliers, which are the backbone of system. The future for suppliers that are classified as plan A in a saving model or saving policies is unfortunately always a concern in this sense!
This type of misapplications make the cost of losing the supplier in the long term more than the cost of holding the supplier and developing;
• Delivery problems of expenses-raw materials (deadlines),
• It will take time to work with a different supplier, and if it is serving contractor, it will lead to long-term problems of compliance
• It will also raise extra costs like confidence in the supplier. Companies that foresee these results are able to manage the policies of “Sustainable SCM” more effectively.
But, how?
Sustainable SCM (Supply Chain Management) policies are related to the ability of the company to continue its production without any concessions on a smooth, timely basis. One of the most important elements of supplier loyalty and commitment is to provide supplier satisfaction.
This is very difficult in the real world. Supplier satisfaction is part of the business culture and can only be achieved by avoiding factors that lead to dissatisfaction and understanding of supplier expectations, as well as enriching communication channels which is one of the business models.
In short, the size of the business can be measured by the satisfaction of the supplier. The presence of the supplier determine corporate image of the company during its lifetime in that company.
Supplier Development and Performance Evaluation
The commercial and voluntary relationship of the supplier with the firm that it has been working for many years is not enough to keep the supplier. But these suppliers who have been institutionalized with the company for many years are the ones that need to be developed with its qualified staff or with the ability to respond to the problems or needs of the production network of the company, not abandoned.
As stated below, when the supplier becomes operatable for the comany its needs and desiderata identified with on-site inspections. This is generally the responsibility of the supplier development departments of sustainable companies. As a result of such kind of a performance evaluation, companies and suppliers ways opens.
A very positive result of evaluating supplier performance is opening better communication channels.
The company can also meet the supplier for such review and stimulate the existing business relationship. This is considered a part of doing cooperative business for professional interactions.
Such a review may also provide the supplier with the necessary feedback to develop its own company.
Even if the relationship with the supplier needs to be changed after an evaluation, the process of overcoming the cost and value analysis continues to offer better solutions to the needs of the company. In some cases, these reviews may lead to a reform of the business contract with the current supplier, but this also transforms into a regular activity among the professionals. For an ongoing relationship, enhanced communication is a great benefit.