Krinati Solutions

Why is Supplier Performance Management important? Supplier performance management is important for a number of reasons: It helps ensure that goods and services are delivered on time and meet quality standards. This is especially important in industries where timely delivery and high quality are crucial, such as in the manufacturing or healthcare sectors. It allows organizations to identify and address issues or problems with their suppliers before they have a negative impact on the business. This can help prevent delays, reduce costs, and improve overall efficiency. It helps organizations make better-informed decisions about their supplier relationships. By tracking and analyzing supplier performance data, organizations can determine which suppliers are the most reliable and cost-effective, and prioritize their relationships accordingly. It can help organizations build stronger relationships with their suppliers. By working closely with suppliers to understand and address their needs, ...

  It is up to the buyers to enforce practices in their sourcing process that build trust with suppliers. These practices assume greater importance when companies resort to eProcurement. Companies that have been successful in building a credible eSourcing initiative tend to adopt the following practices. These practices have been shown to encourage suppliers to participate in a fair and competitive manner. Buyers agree to the following steps that establish credibility Detail out the requirements clearly. While the incumbent suppliers understand even the unstated requirements, the new ones wholly rely on the RFP for clarity. So explain the specifications and service level expectations as clearly as possible. Award only to the suppliers who bid online. Manage suppliers who don’t like to bid online with great urgency and importance. A handful of such suppliers can derail the entire  eSourcing platform   initiative. If lots (containing multiple line items) have been created an...

  Procurement teams often face a scenario where they have to compare bids from suppliers that aren’t exactly similar. What do we mean by that? Here are some scenarios where bids received from suppliers aren’t comparable. Shipping costs are incurred by the buyer and are different for each supplier i.e. supplier provides goods ex-works and the buyer is responsible for the transportation of goods. Payment terms are different Quality and esourcing services levels are different Switching costs are incurred with a new supplier Preference is given to incumbent suppliers plus others If we need reverse auctions to be conclusive in themselves, then they cannot be applied in such scenarios. This can be a challenge for companies trying to establish reverse auctions as a norm for supplier negotiations. The way to address this is via Transformed Price bidding. How does that work? The bids placed by suppliers are transformed by applying ‘Price Transformation Factors’, thus normalizing the bids r...

  In the last couple of months, we have been successful in signing up new customers across 4 countries. These companies are from varied industries - Financial Services, CPG, Auto, and Energy & Utilities. Here are 5 reasons why companies select the eSourcing services of Krinati to tide over the ongoing crisis. 1. Immediate Savings With Online Auctions Conduct Reverse, Forward, and Dutch auctions for direct materials, indirect materials, and capital expenditures. Our customers also conduct online auctions for packaging and logistics spending. All of these are aligned with making the process more transparent for suppliers too. 2. Digitalization Of The Entire Sourcing Process Automate RFIs, and RFPs, Analyze bids in real-time as soon as they are submitted by suppliers. Generate Note for Approvals. Buyers experience greater control they now have over a sourcing event, with critical information at their fingertips to execute activities much faster. 3. Highest Rate Of User Adoption ...