Gary Palgon
Vice President, Product Management
nuBridges
In good financial times, companies often look to the latest innovations to help their business. While they are “cool,” it is often a budgetary luxury to be on the bleeding edge and experiment with new technologies. However, when budgets get really stretched, it’s back to business basics like squeezing out efficiencies to cut costs. At the same time it usually gives companies the opportunities to figure out better ways to operate – which is often the case in the supply chain world of eBusiness.
Trading partner management, sometimes referred to as community management or supplier enablement, involves managing the relationships between retailers and suppliers to optimize both the planning as well as the electronic business connections between them. Now is the time for organizations to see what opportunities there are to move communications between retailers, distributors, wholesalers, manufacturers and financial institutions from phone, fax, paper or email (most often with an Excel attachment) to true electronic interactions – moving in real-time without manual intervention.
The October issue of Consumer Goods Technology hits this nail on the head with “The State of Retail: Economics Force Suppliers and Retailers to Work Together.” http://www.edgellcommunications.com/main/download.php?_id=485] Mike Griswold, VP at AMR Research, surveyed companies about their priorities for an agile supply chain -- connectivity for sharing order and advanced ship notice (ASN) was right on top with 40%. It seems like such a basic business process, but is so basic to achieving business efficiencies.
A very relevant benefit of better trading partner management actually has to do with the quality and safety of your supply chain too. Chain Store Age magazine’s October issue (http://www.chainstoreage.com/story.aspx?id=80047&type=print) speaks to this precisely in “Identify and Know Suppliers” where Connie Robbins Gentry presents the risk in not constantly contacting and knowing your suppliers. If you don’t manage your trading partner relationships within your community, you can’t possibly keep up with the quality and risk associated with doing business with your suppliers.
What are you doing in your business to get closer to your business partners? Have you thought about your trading partner relationships and the eBusiness efficiencies that can be received by focusing on them and converting offline communication to electronic business?
Until next time,
Gary
