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Are we comfortable sharing our demand information with the vendors?
We know that vendors should be treated as partners. Is it just a sweet talk or does it reflect in our actions?
A key element of this manifestation is sharing our demand information with the vendors on an ongoing basis. We often ask them to either expedite or delay deliveries. Can we convert it to a daily flow of relevant consumption information that would be useful for them to schedule deliveries in time?
How transparent are we in sharing our product demand with them, for the relevant range of course? For example, if a vendor supplies sandal perfume, which goes exclusively in sandal soaps, do we share the momentum of our sandal soap sales with him? How frequently… monthly, weekly, daily?
Sharing such simple information with our vendors not only creates the atmosphere of trust and transparency, but it also helps them anticipate the next order and be prepared for it.
It’s akin to ordering a small quantity every day. The vendor can then accumulate these orders and deliver when it makes a shipment load. As Dr. Goldratt said, ‘Order daily, replenish frequently.’