As Supply Chain Management (SCM) grows, so does the electronic commerce interface that is required. After all, you cannot run Supply Chain Control Tower unless all the pieces of the puzzle are present. Let's discuss specifically suppliers.
All suppliers, including the ones who communicate in a clear and timely fashion, and who consistently deliver on time, need to be monitored. Compliance optimization, which includes tracking and identifying performance issues and communicating issues to suppliers, pays off for both parties. When supply chain problems are identified at a detailed level, addressed, and fixed, the retailer-supplier partnership benefits. It becomes more efficient and more profitable.
Monitoring vendors for compliance is, obviously, a key to both good business and good business relationships. Relationships between retailers and vendors are, at best, complicated and difficult; at worst, as many buyers have painfully learned, the partnership can become chaotic and nearly impossible.
While “outlier” is normally thought of as a statistical term, it perfectly represents an element of the supply chain that could be (1) physically separate from other elements of the supply chain; (2) culturally different from the rest of the supply chain. “Culturally” might include: language or work methods. Running an outlier tends to cause difficulties to the Supply Chain Management. Let's look at outsourcing as a solution.