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The idea behind the lifecycle management is simple. It is about collecting and processing the knowledge. It is the business management approach that is used by all kinds of business - small as well as large. The reason for using this approach is to improve the sustainability performance of the department and the business itself. In the majority of businesses, this management technique is in correlation with the products and product-related information. However, a supplier is the person in the heart of the procurement of the product. Everything that is product related goes through supplier first. 

The supplier lifecycle management makes sure that the right kind of supplier is found and the business is able to procure the products at right cost. This approach reduces the risk and helps to create the better quality of the products. There are a few businesses who still prefer keeping the product-centric approach. 

Phases of supplier lifecycle management

Supplier Qualification

In the first phase, the suppliers are divided and qualified on the basis of the fulfillment of the orders. The suppliers from all over the world are invited. Opting for the right supplier will get you a high-quality product in return.

Supplier Evaluation

Once the qualified suppliers are selected, they fill the evaluation form and submit the related documents. You can either use the forms, questionnaires, scorecards or more for the evaluation.

Supplier Selection

The supplier selection process is one of the most important processes. This process determines the right supplier for the business. Various qualitative and quantitative methods are used to determine the long-term supplier.

Supplier Onboarding

To facilitate a long-term relationship, it is necessary that you have all the information regarding the supplier. The manufacturer would be able to track the performance related information.

Supplier Performance Management

The performance management of the supplier lifecycle management helps to spot any supplier issue in the early days itself. It won’t matter if the supplier is domestic or international. The businesses would be able to track all the suppliers and their respective performance.

Supplier Risk Management

The risk management makes sure that there is no supplier base and no disruptions are present. It is one of the most critical and essential steps as it keeps the business and end customer safe. 

Supplier Development

In the development process, the suppliers and the manufacturers collaborate together to improve the process and enhance their capabilities. This step of supplier lifecycle management only comes into picture when the performance of supplier is not up to the mark. To keep the performance up it is necessary to get regular feedback.

Supplier Relationship Management

The purpose of relationship management is to facilitate trust between the business and the supplier while increasing the level of innovation. A successful SRM results in lower costs, less risk and better quality for the parties involved.

Want to apply lifecycle management approach to your business? Contact Resion. They have one of the leading supply-chain solution provider companies in the US.