We've all been there: a crucial project comes to a screeching halt because a promised delivery hasn't arrived. Late purchase order lines (PO lines) aren't just frustrating, they can be a major drain on your company's finances.
The impact goes beyond simple delays. Each late PO line can incur hidden costs that range from $10 all the way up to thousands of dollars. These expenses add up quickly, encompassing:
So, what can you do to mitigate these risks? The answer comes down to 1) Transparency, 2) Partnership and 3) Tool for success
When both you and your suppliers have real-time access to critical purchase order information, collaboration becomes a breeze. This transparency empowers suppliers to:
Studies show companies that prioritize supplier visibility experience a dramatic 35% to 40% improvement in on-time PO line fulfillment.
Think of your suppliers as an extension of your own manufacturing operation. By providing them with a clear window into your needs, you're fostering a true partnership. This collaborative approach leads to greater efficiency, reduced costs, and a smoother production flow for everyone involved.
There are a number of software solutions available, like Leverage, that can help bridge the communication gap and create a more transparent environment. These platforms provide a central hub for real-time information sharing, streamlining communication and ensuring everyone is working from the same data.
By investing in supplier visibility, you're not just improving communication; you're making a strategic investment in the success of your entire operation. Don't let late PO lines cost your business time and money. Embrace collaboration and unlock the hidden potential of a strong supplier partnership.
Want to learn more about Leverage? Schedule a demo today.