Supply Chain

Since Riordan Manufacturing uses the level strategy it is very important they have a great relationship with its suppliers.   Strong relationships with the suppliers help to drive cooperation as well as trust and value throughout the supply chain.   Top management recognize the importance of developing and maintaining world class supply chains that gives them the competitive advantage that is needed to get ahead of the competition in the market.   The factors that are important in maintaining a great relationship with suppliers is to know the history of the supplier and the suppliers environment. For example, the company’s expectations of quality, on time delivery, the competition that they have, and the effectiveness of their delivery techniques. With Riordan manufacturing the goods based on customer order the supplier has to be one that is trustworthy with the reputation to get the product to the customer in a timely manner. Riordan uses large suppliers like UPS, Federal Express, and DHL. These are some of the largest suppliers in the business with a good reputation of getting the products to the customer in tip top shape and on time. In order to respond effectively to demand Riordan realizes that exports of goods are a good option for maintaining flexibility in response, even though dealing with companies from overseas could cause some uncertainties in the relationship. According to Supply performance, “using custom built reports and dashboards, supplier relationships can be maintained and nurtured to ensure your supply chain can be world class. Global supply chains are complex, high number of in putters, long distance and language barriers and a great SPM system can help manage of these. (Supplier management, 2011).   Communication and trust is the key to a great collaborative supplier relationship.
Supplier Management, (2011), Supply Chain Relationships,
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