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Supplier collaboration occurs when a business engages with vendors within a supply chain, integrates them into its processes, and aligns them to core business goals.
For most distributors, brands, or retailers, getting products to consumers means partnering with item suppliers as a vital part of their supply chain. Supplier collaboration is the process of integrating with these vendors to gain alignment, organization, and efficiency.
One way businesses collaborate with suppliers is by establishing workflows and systems that meet the needs of all parties. Using inventory management and supplier data management systems, for example, ensures that both the business and the supplier have access to accurate, up-to-date information in one central location.
Supplier collaboration takes the business relationship one level deeper by ensuring that all parties are aligned around central goals.
In a collaborative model, suppliers don’t only provide the business with items; they add to the overall value chain by improving time to market, controlling quality, and streamlining workflows. Ultimately, better supplier collaboration means getting products to consumers more efficiently.