Sound cooperation with suppliers through communications

Working hand in hand with the supplier

A company’s communications strategy should clearly explain the concept and objectives of its procurement strategy to suppliers. Frequently, current and potential suppliers are invited to suppliers’ conferences that are held for this purpose. As a result, new contacts can be made, future partnerships can be discussed and solutions to current problems can be analyzed in a simple and efficient manner.

Smooth procurement thanks to good communications

In the just-in-time Just-in-time or just-in-sequence Just-in-sequence supply used by the automotive industry, the supplier becomes an extended assembly line for the automaker to a certain extent. In this system, the assembly line comes to a halt if the supplier’s deliveries fail to keep up with the pace and to provide just the right number of parts. As a result, communication between the customer and the suppler is particularly important for smooth-running procurement processes.
Communications strategy should explain to the suppliers the ideas and intentions behind a company’s procurement policy. Its aim is to gain, sustain and improve suppliers’ performance, willingness to supply and observance of contract terms.
The relationships between communications strategy and procurement logistics are only very general. For instance, the close cooperation between supplier and customer in the just-in-time Just-in-time or just-in-sequence Just-in-sequence supply system requires suppliers who are capable, willing and reliable. Communications strategy can help a company find suppliers who meet the demands of procurement logistics.
A typical instrument of communications strategy is suppliers’ conferences Suppliers' conferences . The procuring company invites current and potential suppliers to these meetings and talks with them about problem-solving issues, which can also pertain to procurement-related logistics matters [1].

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