Supplier management is a complex task. Global products often dictate local supply, requiring management of multiple suppliers for each ingredient. Similar or identical components are often named differently and only a subset of information regarding component performance is captured. Information exchange with suppliers involves both manual and automated processes. Effective supplier management requires processes and technologies that enable the efficient capture and management of all product component information.

Some common issues are:

• DISPARATE INFORMATION SYSTEMS - Production and product development teams are often geographically and technologically siloed and don't share the same knowledge base.
• NON STANDARD NOMENCLATURE - Similar or identical ingredients, packaging, equipment, or other components are often named differently making it difficult for buyers to rationalize suppliers and reduce costs.
• COMPLEXITY - Product elements, such as ingredient properties, formulations, manufacturing processes, and regulatory requirements are highly interrelated, making it very difficult to determine every impact of a supplier change. Manually assessing all potential impacts is a lengthy and potentially risky process.
• INEFFICIENT INFORMATION EXCHANGE - Supplier specifications are communicated in various formats which must be manually interpreted and re-entered into corporate systems. This process is slow, administratively costly, and error prone.

Dramatic improvement in supplier management is possible when the following strategies are applied:

1. Establish a central product knowledge base to standardize component nomenclature. Utilize the knowledge base to analyze the impact of any proposed supplier changes.
2. Use role-based interfaces to make it easy for non-specialists and external suppliers to enter and update product component information.
3. Capture component performance information throughout the products design and production lifecycle and use it to make price vs. quality procurement decisions.
4. Link the knowledge base to corporate systems to eliminate re-keying of information.

The benefits of taking this approach include:

• LOWER COST - Supplier selection process is standardized and streamlined.
• HOLISTIC SOURCING - Components can be sourced on more than just cost metrics.
• SUPPLIER CONSOLIDATION - The total number of suppliers can be reduced.
• INCREASED COLLABORATION - Collaboration is enhanced between R&D and procurement, increasing efficiency.
• DECREASED COMPLEXITY - Minimizing duplication leads to lower complexity and less administration. Complete impact analysis, prior to implementing any proposed supplier changes, reduces unforeseen costs and risks.

With Lascom CPG, you can substantially improve supplier management. Lascom CPG stores all your product information, including ingredients, recipes, manufacturing processes and nutritional data. Lascom CPG enables automated processes, increased collaboration and improved efficiency.