The relationship between retailer and supplier is the cornerstone of any successful business partnership in the marketplace. These partnerships are essentially symbiotic relationships since both parties rely on each other for success.
But what goes into building these relationships, and how could supply chain and stocktake solutions, like good faith receiving, help to bolster them? Read this blog to find out.
Business Partnerships Need Two-Way Communication
Business bonds are built on transparency, reliability, and mutual respect between the two parties; retailers rely on suppliers to consistently deliver products on time, while suppliers depend on retailers to accurately forecast demand and provide fair terms of trade.
That’s why communication is essential here. Being open and clear between businesses enables proactive problem-solving, addressing challenges such as demand fluctuations, production delays, or market shifts before they escalate into major issues.
Communicating efficiently over time will help to establish trust between retailers and suppliers, fostering collaboration and enhancing the efficiency of their supply chains.
However, despite the inherent trust between retailers and suppliers, breakdowns in relationships can occur, often stemming from disputes over invoices and financial discrepancies.
Overcoming Challenges in Verification Processes
Verifying goods received from suppliers is crucial for ensuring accuracy and integrity in transactions, regardless of how much any retailer trusts their supplier.
The retailer must verify goods received from suppliers to ensure they match what was paid for, regardless of how much they trust the supplier. However, with the complexity of modern supply chains, manually overseeing every aspect of the process is impractical and costly.
This verification process requires extensive time and financial resources from retail staff, along with administrative expenses for compensating stock shortages, which can consume valuable time and manpower.
With that said, no supply chain is going to be perfect. There will be errors in stock accuracy, last minute changes to invoices or ASN’s or simply human error, which could strain the retailer-supplier relationship.
This is where the concept of Good Faith Receiving steps in to bridge the gap and restore confidence in the supply chain and relationships.
Good Faith Receiving Streamlines Your Supply Chain
Good Faith Receiving (GFR) and Direct to Store (DTS) Checks offer a systematic approach to restore trust and streamline the verification process. Orridge Supply Chain Services, as an independent auditing provider, equips retailers with the tools and expertise to implement GFR and DTS effectively. By embracing these methodologies, retailers can:
· Ensure Accuracy: Verify small samples of deliveries and compare them against invoices.
· Enhance Efficiency: Streamline the verification process to save time and resources.
· Minimise Disputes: Proactively address discrepancies to prevent conflicts with suppliers.
· Strengthen Relationships: Foster trust and collaboration between retailers and suppliers.
Watch our explanatory video to see exactly how GFR works for businesses like yours!
Get in Touch with Orridge Supply Chain Services
Orridge Supply Chain Services is an innovative and expert supply chain solutions and retail stocktaking services provider and is always looking for new ways to maximise supply chain efficiency.
By embracing transparent and collaborative practices, retailers can navigate the complexities of the supply chain with confidence. Partner with Orridge Supply Chain Services to implement effective GFR solutions and unlock the full potential of your supply chain!
Using our independent and expert audits, you will receive the tools you need to measure and manage the GFR and DTS processes and unlock the potential gains you will make both commercially and with your business relationships.
Call us today on 01279 775 600 today or email sales@orridge.co.uk and a member of our team will be in touch as soon as possible.