Supplier issues faced by manufacturing industry

As a manufacturer, there are many problems that you may face in your process. The main one or say one of the main ones can be the issues that manufacturers face are the problems with their suppliers.

Having issues with other departments of the supply chain could hardly have any effect on your production, but if tension arises between you and the suppliers, the whole production process can come down. Suppliers are the first approach for the needs of a manufacturer for processing the raw parts into final products. Therefore a manufacturer and suppliers are ought to have a good relationship and understanding between them, but sometimes conflicts do arise.

These are some major issues that can create a stress in manufacturer and supplier relationship.

1. Improper Quality Control

This is one of the main reasons why issues arise. The supplier many times falls short of the quality that the manufacturer expects. It can be due to many reasons, but it is a big issue for the manufacturer as it can disrupt its production process. To avoid this type of problem, the manufacturer must make a suitable choice when selecting a supplier from the very start. The manufacturer can ask for a sample product in the or also a reference to other products in the market to compare. These precautions taken at the start can avoid quality malfunction in the future.

2. Outdated components

Due to latest technological changes and enhancements of products, it is necessary that the vendor supplies products that are of the latest specifications. Outdated components then prove of no use if the product is upgraded. To the manufacturer it’s just like as having a mobile of which memory can’t be expanded. Countering this requires a good and effective communication between suppliers and manufacturers. The manufacturer needs to keep check on the supplies and regularly audit it rather than only depending upon the certification.















3. Dire relationships

It is very important to keep good relations with the vendors you have a daily business with. It is not only about having good relations, but it will also keep both the parties close and it would provide each other with better quality and margins. Not having proper relations with the supplier can often lead to issues. Keep the suppliers close and participate in face to face engagements with them regularly and also try to keep them updated about the outputs of their supplies. This can keep the relations between them clear and healthy.

4. Surprise increase in prices

It is shocking for a manufacturer to see unexpected accounts adding up to the bill and it is obvious to anyone. When it comes to money, conflicts are waiting to happen. These types of issues or much complicated to solve. To address it, it is better to have a written record of all the components in and out and set up a team which keeps all this in check. 

Ref= liquidcapitalpacific.com  

These types of issues lead to conflicts between manufacturers and the suppliers. The decisions you take are the most important to avoid or to invite any sort of issues. Therefore, it is advised to take not only proper but wise decisions and act to act on them is another important thing.

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