Finally, the fourth aspect of supplier management is to achieve your goals on a consistent basis. This requires continuous work in the influence of suppliers in order to achieve performance objectives and ensure profitability. Share information and priorities: For your suppliers to be able to respond effectively to your needs, it is important that you provide the necessary information in a timely manner. This may include startup data, design changes, forward-looking information and other relevant information that may affect quality or service. The second part of the process is to select the best suppliers that can match the characteristics of your business. Each supplier will have its strengths and weaknesses, and choosing the right one is a very important task to optimize operational results. Looking to the future: short-term relationships with suppliers will only lead to short-term gains and marginal savings. The real value comes from the development of long-term partnerships. This allows the trust and commitment of your suppliers, which could lead to discounts, preferential treatment and access to expertise. Allow strategy and innovation: if you and your suppliers work together on strategy, you can get the best value for money.
Invite the seller to meetings involving the product he is currently working on. You hired him because he is an expert in this field, which has allowed him to provide valuable ideas or innovative proposals that make the product better or even cheaper, which could give you a competitive advantage. Supplier management is based on the next four steps. The first is the definition of the trade objectives mentioned above. It`s much easier to choose and manage suppliers if you have clearly defined performance metrics to compare and contrast. The term « credit management » is used when describing activities that are included in the search and acquisition of suppliers, when bidding with prices, skills, processing times and quality of work, when negotiating contracts, awarding relationships, evaluating performance and guaranteeing payment. It takes a lot of skills, resources and time. A Power Purchase Agreement (PPP) is a long-term agreement between a developer and a consumer on the purchase of energy. The Iberdrola Group has extensive experience in this sector in countries such as the United States, Mexico and Spain. An AAE is a long-term agreement to purchase clean energy from a given asset at a predetermined price between a renewable development developer and a consumer – usually a company that needs large amounts of electricity – or between a developer and a supplier who then resells the energy. Signing an AEA can be interpreted as the sale of a project and its environmental attributes (original guarantees): it is a commitment that allows a renewable energy developer to make an investment decision using the criteria of profitability against risk and/or to obtain the necessary financing to carry out the project.
Focus on win-win agreements: you won`t be able to build relationships with strong negotiating tactics. Instead, you create resentment that can lead to other problems on the road. Focus on negotiating good faith agreements that will allow both sides to feel good about the agreement. In markets where the renewable developer does not have a retail license and the customer wants a physical PPP, an agreement can be reached with a local retailer to transfer the terms of the ppA between the customer and the renewable developer to customers. Third, the management of your suppliers. Your supplier managers must monitor performance and performance on a daily basis, ensure that contractual terms are met, approve or refuse changes, provide feedback and develop relationships through effective communication, honesty and integrity.