Business development is the process by which a company identifies and selects a business that can provide the products or services needed to meet its specific needs. Business development activities may include business interviews, business surveys, business audits, and business selection criteria. Business development is an important part of the company's overall chain management strategy, and it is essential to ensure that the right business is selected to provide quality products and services.
*The development goals of the business are usually to improve quality, reduce costs, shorten lead times and improve delivery performance. For the best results, companies should strategically and systematically approach business development. It aims to go beyond current contractual requirements to develop stronger business relationships.
The goal is always to improve the relationship with the best businessmen. This can be done by working together to identify areas for improvement and then develop a plan to address those areas. In addition, companies should strive to create a culture of continuous improvement among their business community. This means encouraging vendors to find ways to improve their operations and then working with them to make those improvements happen.
Companies should also be committed to building trust with their businessmen. This can be achieved by being transparent and honest with the business provider and sharing information and ideas freely. By following these tips, companies can build strong relationships with their merchants and create a culture of continuous improvement throughout the chain.
** Business development process
The business development process is a key component of the organization's procurement and chain management operations. It can be used to improve the quality and performance of an organization's quotient base, as well as to identify and evaluate potential new entrants.
1. Evaluate the ability of the best business
When looking for goods and services, it's important to assess their capabilities to gain a competitive edge. Capability can be assessed by evaluating the performance of the vendor in three areas: delivery, quality, and quality. Deliveries are assessed by looking at the record of on-time delivery and on-time delivery. Quality is assessed by evaluating a merchant's record of producing high-quality goods and services that meet or exceed customer expectations.
*Evaluated by assessing the merchant's track record of providing competitiveness without sacrificing quality or delivery. By assessing the capabilities of the business provider in these three areas, organizations can make informed decisions about whether to do business with them and what type of business relationship to have. This information can help organizations identify potential areas where they can improve their operations.
2. Plan and execute improvement activities
All successful business development programs work by systematically inspecting the base to plan and execute improvement activities.
Assess your quotient base
First, look at the number of vendors your procurement team relies on on each day. Is there room to eliminate dead weight? Do you have enough vendor diversity to protect your operations from unplanned downtime in the event of an emergency or other chain disruption?
Meet with the ** Chamber of Commerce
Schedule time to discuss areas where they can improve with each of the most important business providers and what initiatives the two of you can work together to monitor improvements.
Consider implementing a cost-cutting team
These teams are typically made up of individuals from different areas of the organization, such as procurement, engineering, and quality assurance. The goal of these teams is to work with the best business providers to find ways to reduce costs and improve quality.
Establish the best business quality requirements
These requirements can be used as a guide for the manufacturer to manufacture a product or provide a service. They can also help identify problems early and prevent them from becoming bigger problems later on.
Use a business performance review
These assessments use agreed-upon metrics and key performance indicators (KPIs) to assess how well a vendor meets certain quality and delivery requirements.
3. Follow up and measure improvements
To ensure customer satisfaction, be sure to schedule time to follow up with your business provider and measure improvements. Part of successful business relationship management is communication – making sure everyone is on the same page, not only in the short term, but also in the long term. If, after coaching, you find that things aren't going the way you expected, reconnect the conversation and make adjustments. If the situation is very different from your plan, you may need to look for another provider.
Improve quality and cycle time
Partnering with a merchant to improve the quality of a product or service often helps reduce cycle time and ensure that they respond to customers faster. Since quality and cycle time are major risk factors for performance, this is a key area to focus on.
Reduce costs
If you're asking for year-over-year cost reductions, you're likely to only see benefits in the short term. Cutting costs without improving operations is not a sustainable business approach because it can increase risk. Adequate business development can help you eliminate waste in their business, which can save you money. When working with an offshorer, you may need to invest time and other resources upfront to avoid risks while reaping benefits to ensure you get better long-term results.
Better business coordination
Working together can improve the coordination of the overall business. Sharing goals and strategies with each other can help you better understand your needs as a customer so they can respond faster. Understanding things from a businessman's perspective ensures that you're able to adjust the process to be more collaborative, showing that you support their business just as much as you need them to support your business.
This means more understanding and trust between both parties. As a result, the vendor may introduce you to a new product or service idea before sharing it with others, giving you a competitive advantage for both of you.
Communication is key
If you don't have a large stake in the company, you can't ask the company to move mountains. If you're one of the smallest contracts and they don't lose too much by sending you to another merchant, you don't have the leverage.
That's why communication is important. Whether you're communicating via email or a merchant portal, the reality is that you can't use a mass-based, one-size-fits-all approach if you want to really make a difference. Let your account manager speak directly with your business manager through personalized communication.
Set clear expectations for both parties, including dated milestones and deliverables you can measure. This makes it easier for everyone to follow. If you want to see a business change, you have to build trust, and the most effective way to achieve this is through two-way communication. Share information. Let the supplier know about your product pipeline. Be open and transparent.
The support of the white code SRM business management system can help enterprises establish a standardized and traceable business management system for the whole life cycle, and each link of the business can be queried and traced to ensure that the business management department is open and transparent in business. Build stronger business relationships!