Page 12 - Industrial Technology July 2021

INDUSTRY

UPDATE...

Supplier relationships must be

built on trust and partnerships

SCOTT DEAKINS, COO OF DEACOM, ARGUES THAT THE KEY TO A TRULY real-time view in the supply chain. Receiving, quality and
DURABALE SUPPLIER RELATIONSHIP IS A ROBUST PARTNERSHIP production processes can all be synchronised as well.
EDI, advanced forecasting algorithms and data analytics,
eaction speed is the most important factor in a incentives in a period when 40 percent of product value can also help manufacturers understand the dynamics of
world that is constantly changing. While supply is outsourced to suppliers. their own supply chains and quantify each supplier’s
and demand have always fluctuated, as we The best supplier relationships are built on trust, and impact too.
Rsaw in 2020, those fluctuations can speed up some of the largest companies in the world have For example, a purchase order management solution
exponentially with minimal foresight. experienced success thanks in part to their strong within a firm’s ERP system can help by creating,
Grocery stores provided a quintessential example, as supplier relationships. For instance, Jean-Christophe processing and tracking purchase orders with suppliers.
data from market analysts Nielsen shows UK Deville, general manager of purchasing at the world’s This can foster a better and ultimately stronger view of
supermarket takings surged by more than 20 percent biggest automaker, Toyota, credits the company’s success the enterprise’s relationship with each supplier.
during the period 24 February to 21 March last year. The to long term, collaborative and close partnerships with Technology is also an invaluable tool for staying on
sudden spike in demand was driven by consumers key Japanese suppliers. top of payments to suppliers too, which is crucial for any
rushing to stockpile their fridges and homes with supplies In order to develop these types of relationships, a business. Suppliers value timely payments just as much
amid fears about the spread of coronavirus. company should take on a supplier as a partner on equal as businesses value timely action from their suppliers. By
The British public made an extra 80 million grocery footing. Over time, the relationship will develop the trust relying on ERP solutions to streamline payments, errors
shopping trips across the four-week period, and spent an and loyalty they need to anticipate new movements and can be reduced while ensuring that suppliers are paid on
extra £2billion on food and drink than the same period in respond to them as quickly as possible. time.
2019. Pasta, canned goods and other common As an example, let’s say a trusted supplier changes With supply chain dynamics now shifting on a daily
household items rapidly became the most sought-after his pricing because the costs of a set of raw materials or basis, and raw costs and labour availability often in flux,
products in UK shopping aisles. It wasn’t uncommon labour may have suddenly changed. Instead of finding it is vital for businesses to be able to react at speed, and
either to see people lining up outside stores, hoping to out about an increase in costs when the next invoice essential for them to build strong relationships with their
acquire their daily essentials before they sold out. lands, the supplier may be more forthcoming, notifying suppliers over the next 12 months.
Technologies enabled businesses to adjust to these his partner in enough time to adjust resources As we look to the rest of 2021, by favouring a
new peaks in demand and reorient their supply chains accordingly. He may even give the company a chance to partnership approach – instead of purely transactional
effectively. But it is the framework of supplier negotiate, which can be of vital importance when price relationships with suppliers – businesses can overcome
relationships that really drives the agility to pivot when pressures hit. some of the hurdles the current climate has presented
required. For businesses that have scaled substantially, them with. They can also further position themselves for
Supplier relations are often an under-utilised avenue technologies are indispensable for gaining real-time success by relying on technologies such as ERP, EDI,
for delivering value. A Deloitte Global CPO Survey from visibility into supply chains and suppliers. Software like B2B ecommerce, advanced forecasting algorithms, data
2019 concluded that a strong supplier relationship can ERP assists business users in tracking which suppliers analytics and purchase order management solutions. Only
help businesses adapt as needed, and can be developed are helping, and which are hurting, allowing them to by understanding the importance of effectively managing
via solid partnerships, trust and visibility. Supplier identify any weak points in the chain. such technologies and relationships will businesses not
relationships also provide a leg up over the competition They are also useful in engendering collaboration only help to improve resilience, but ultimately, the
and can tip the scales of profitability – attractive between enterprises and vendors by providing a shared, profitability of operations long-term too.

Expanded calibration and support services

ensonics has expanded its service offerings on-site and this can be extended to confirm the accuracy
supported by important investment which and alarm functionality of the complete measurement
will help it to meet the growing and changing loop. Where sensors and monitoring equipment require
Srequirements of customers. The company separate calibration, Sensonics can provide signal
has always recommended that critical sensing and injection methods to confirm the monitoring equipment
protection equipment is maintained and calibrated in-situ and with UKAS traceable calibrations in its
annually to meet accuracy and efficiency demands laboratory. Fast turnarounds are also available on request
whilst also following industry best practice. Return to along with upgrades and refurbishment services for
base calibration services have always been offered for obsolete equipment.
Sensonics’ sensors and systems yet the company Sensonics specialises in providing sensing systems for
recognises that flexibility in meeting this best practice monitoring the dynamics of turbines, pumps, fans,
is vital to customers. compressors and motors. All equipment is designed and
It is not always easy to dismantle and return manufactured in the UK and therefore the company’s site
critical monitoring equipment, while outage planning calibration team has a wealth of expertise to fall back on
is complex and variable. Sensonics’ expanded on-site to support customers’ maintenance requirements and
calibration services include experienced site engineers engineering resources. Calibration of vibration sensors and to minimise downtime.
backed up by UK manufacturing and specialised proximity probes is a service that the company offers MORE INFORMATION: www.sensonics.co.uk

12 INDUSTRIAL TECHNOLOGY • July 2021