Best practices for optimizing supplier management in supermarkets and stores

Legislation related to supplier management in Spain focuses particularly on the economic relationship between the parties. Thus, Law 15/2010 establishes measures to combat late payment in commercial transactions and the obligation to report the average payment period to suppliers. Meanwhile, Royal Decree-Law 19/2018 regulates the electronic payment system between suppliers subject to Spanish law. 

Beyond payment-related matters, achieving optimal results in supplier management also requires establishing a series of specific best practices according to the sector in which we operate. Let’s look at how these can support the proper operation of supermarkets and stores. 

Supplier management: what it involves and what advantages it offers

Supplier management encompasses the entire process from the moment the company identifies the need to work with suppliers. From there, it includes all interactions established during the execution of shared operations. Its importance is critical to achieving business success. 

The selection of partner companies usually depends on criteria such as price, product quality, reputation or delivery times. Once the supplier has been chosen, the contracts that will govern the commercial relationship are signed. Finally, it is advisable to carry out ongoing measurement of results, identifying areas for improvement.

Achieving optimal performance at each of these stages is key to ensuring strong team performance and maintaining customer satisfaction. Likewise, proper supplier management brings significant benefits to any type of company:

• It facilitates business continuity in unforeseen circumstances. Unexpected economic situations, adverse weather conditions, or natural or war-related disasters have a highly significant impact on stock in supermarkets and stores. Supplier reliability and diversification help mitigate the consequences of these possible adversities.
• Cost savings. Proper inventory management and process optimization streamline operations and help reduce expenses and save time. 
• Competitive advantage. Having quality suppliers that inspire confidence and honour agreements is an advantage for any supermarket or store, enabling it to anticipate potential problems and provide timely alternatives to customers. 

Best practices for supplier management in supermarkets and stores 

The Ministry of Agriculture, Fisheries and Food promotes a Code of Good Practices in Food Contracting, which supermarkets and stores in the agri-food sector may voluntarily join. All companies that join it undertake to apply commercial practices that “promote fair, balanced and loyal relationships between food chain operators and resolve any conflicts that may arise through the system established therein”. 

This commitment also involves the stakeholders who participate in supplier management. Ethics, respect for agreements, productivity, and the pursuit of customer and employee satisfaction must be at the core and should be complemented by a series of actions that benefit all members of the supply chain. 

1. Championing sustainability

According to the 2022 Global Sustainability Study, conducted by consultancy Simon-Kucher & Partners, 75% of consumers say they have changed their purchasing habits to become more sustainable. 

Customers increasingly demand information about environmental respect and social responsibility throughout the product life cycle. In supplier management, it is essential to verify commitment to sustainability in order to avoid any potential reputational crisis. 

At Shoes For Crews, we understand that reducing our environmental footprint is everyone’s responsibility. That is why we are changing the materials used in our shoes and the entire production process, while also committing to sustainable and vegan shoes. If you would like to learn more about our actions, download our sustainability report.  

2. Using supplier management technologies 

Supplier management in supermarkets and stores is a complex process that requires keeping track of all supply chain activities. The variety of tasks and interactions calls for integrated and effective organization. 

Technological advances now make it possible to incorporate tools capable of gathering all business information, as well as automating and systematizing processes, increasing productivity and reducing potential human errors. 

3. Identifying and mitigating risks

Risks are inherent in any operation, and every company must be able to identify them and have an action plan that enables it to respond. Therefore, it is advisable to develop a supplier risk management map that includes:

• Risk level, based on the impact a supplier failure would have on the supermarket or store supply chain and the likelihood of it occurring. 
• Areas involved in each risk and the specific measures that can be taken to minimize them.

At the same time, it is advisable to establish alternatives that facilitate process continuity when adverse situations arise:

• Having analysis tools by category that make it easier to carry out a risk assessment. 
• Identifying alternative suppliers.
• New supply routes. 
• Defining alerts to identify risks that are occurring. 
• Safety stock. 

4. Working with approved suppliers or suppliers with proven quality

When working in the food sector, as supermarkets do, it is advisable for suppliers to hold certificates approved by authorities, such as the World Organisation for Animal Health, and to comply with specific regulations such as the Common European Fisheries Policy, among other legislation. This ensures that they are ethical organizations that comply with quality and international regulations. 

The Shoes For Crews catalogue features a wide range of footwear certified by approved institutions, ensuring that it meets the safety needs of the professionals who wear it at work. Here is the list of our certified shoes. 

It is also important that suppliers of the equipment and materials used by supermarket and store professionals have a recognized track record and quality. Experience, favourable opinions from companies that have previously worked with them, and evidence of good past results are key factors in earning their trust. 

At Shoes For Crews, we have been trusted suppliers to supermarkets and stores around the world for decades. We know that employee satisfaction is key to achieving the best results. That is why we offer professional footwear with patented technology soles that exceed all quality standards. Contact us, and we will tell you about the solutions that best meet your needs.