A key profession in the supply chain, the supplier sees his role evolving from emergency management to a more strategic role of anticipation. Indeed, in a volatile context, marked by crises and stock shortages, the supply chain needs to develop its resilience. And, this involves in particular the increased digitalization of the supply chain. This also means new skills to learn, particularly in data management and analysis. So what are the new challenges of the profession? How to access the position of supplier? What are the attractions and constraints of this profession?
A pivotal function within the company, the supplier coordinates operations according to the constraints of suppliers, the purchasing department, production and logistics. So he plays a key role for the smooth running of the company, its profitability and customer satisfaction. His job title varies depending on the scope of his missions, the size and sector of activity of the company: supply manager, stock manager, supply and purchasing planning manager, raw materials supplier, factory supplier, customer supplier …
The supplier today carries out his missions in a increasingly unstable context. Indeed, crises follow one another: health, geopolitical, energy and climate. Shortages, stock outages, extended delivery times, etc. are at the heart of the news and reveal the strategic role of the supplier in maintaining the company's competitive advantage.
Knowing how to manage priorities and emergencies remains an essential aspect of the job. But it is above all the ability to adapt to the growing digitalization of the supply chain and service rate requirements which will prove decisive in the years to come. The supplier of tomorrow will therefore be Agile and data-oriented!
What are the main missions of the supplier?
The supplier coordinates the delivery flows and product stocks upstream of the production chain or the company's points of sale. His daily life is punctuated by three main missions.
3 main missions
Within the supply chain, the role of supplier is located between the purchasing function and the logistics function.
1/ Define the business needs
When he works close to purchasing, he works with buyers on a daily basis. In this capacity, he participates in negotiations with suppliers. It also contributes to the sourcing of new suppliers. In this case, it is associated upstream with the qualification and referencing processes. And above all, it sets up a supply plan with the selected suppliers based on the constraints expressed by internal customers (points of sale and/or factory).
[To note]
In an SME, he can have the dual role of buyer-supplier.
2/ Manage processes and service providers
When working close to production, the supplier is confronted with the company's logistical problems. First of all, it is up to him to source and select possible service providers, in particular carriers and freight forwarders. He then supervises procurement operations. He plans and coordinates the transport of products or goods: inventory management, coherent organization of flows, management of shipments, etc. His function also includes a legal aspect. As such, he must ensure compliance with the terms of the contract, in particular compliance with deadlines and conformity of the materials or products received. He is also responsible for managing disputes. Finally, he controls the financial part by taking care of the payment of service providers.
3/ Monitoring of supply operations
The supplier sets up key indicators and dashboards to measure the performance of the actions carried out: stock turnover rate, delivery times, availability rate, etc. It analyzes the indicators, points out malfunctions, provides solutions and a reporting to superiors.
Management of the supply service
The supplier may be required to manage a team. It defines and structures the working methods of the service. He can initiate and manage projects to improve and optimize procurement processes. Depending on the size of the company, it can play an active role in a projectautomation of the procurement function. In other words, contribute to the emergence of a 4.0 supply chain. This digital and connected supply chain can rely on numerous tools: RPA (robotic process automation), artificial intelligence, digital twins, machine learning, IoT (Internet of Things) or cloud.
Variations depending on the sector of activity, products and size of the company
The supplier's missions vary greatly depending on the sector of activity and the type of products marketed.
Sectoral specificities
In industry, the “customer” of the supply teams is production (factory, workshop, etc.). The procurement function is sometimes centralized, sometimes partially or entirely decentralized.
In distribution, the supply manager relies on suppliers based on the production site. He interacts a lot and directly with production executives. He is also in permanent contact with purchasing, marketing and sales teams.
“Product” specificities
Perishable products: the supplier's missions are refocused on transport conditions and security of supply.
Products whose supplier is very far from the place of production or distribution: this is the case, for example, in low-cost countries. As the supply chain is particularly complex, the supplier closely monitors transport operations.
Products manufactured and delivered in large series: the supplier concentrates above all on the organization of the process and its computerization.
[What you must remember]
The daily challenge of the supplier is to manage and optimize stocks, to guarantee the availability of products and the service rate while applying the conditions previously negotiated by the purchasing department. In other words: optimize logistics costs while placing orders according to constraints established in advance.
What training to access the profession of supplier?
To become a supplier, it is better to hold a diploma from bac +2 to bac +5 level. DUTs, BTSs and masters specialized in logistics and transport are popular with recruiters. Business school courses with a specialization in logistics or international trade are very popular. General engineers with specialization in electronics, mechanics, industrial logistics or even in production organization and management are also well placed.
Access to the profession is also possible if you have a solid experience in logistics control, inventory management or customer service (5 years minimum). An experience that can be completed via professional training on procurement and inventory management techniques.
What skills do you need?
The position primarily requires a very good interpersonal skills, because the supplier is in continuous contact with internal and external stakeholders. Internally, this allows him to be aware of everything that is happening in the company and in particular to have a good level of information on sales and marketing operations. Externally, being a skillful negotiator constitutes a major asset. The supplier must also have a great capacity for adaptation and stress management. Rigorous, he relies on a very good sense of organization.
Evolution of skills in a context of digitalization
Supplier 4.0 will rely on the exploitation of data. He will therefore have an increasingly data-oriented mindset. Indeed, what should significantly change the supply function in the years to come is the development of digitalization in the supply chain.
The objective? Reduce repetitive administrative tasks as much as possible and free up time for higher value-added tasks. For example: simplify the placing of orders by increasing the proportion of those that can be renewed automatically. And this, up to 95 %!
For that it is necessary improve demand forecasts. This first requires collecting quality data (harmonization and pooling of data). This then involves analyzing a significant amount of data. Fortunately, the development of uses of artificial intelligence in the supply chain should make the task of suppliers in this area easier. But we must also keep in mind that the availability of digital tools is not everything. Thus, the ultimate challenge for these professionals will be to acquire or perfect their skills in data management and exploitation. This is the new challenge for suppliers!
TECHNICAL SKILLS (hard skills/know-how)
- Perfect knowledge of the constraints of the links in the supply chain (supplier – transport – production – sales)
- Proficiency in supply chain management software
- Mastery of data exploitation tools
- Fluency in English (professional level) and possibly another foreign language
- Knowledge of customs regulations
BEHAVIORAL AND RELATIONAL SKILLS (soft skills/soft skills)
- Ability to analyse and summarise
- Relational ease, listening skills and negotiation skills
- Very good ability to manage stress
- Responsiveness in decision making
What is the salary of a supplier?
Remuneration and salary progression for a supplier vary depending on their experience. For beginners, the range is €22,000 to €28,000 gross per year. Experienced profiles can count on a salary ranging from €28,000 to €45,000 gross per year. On average, the gross annual salary is around €37,000.
What are its prospects for development?
The progression to a position of supply manager or director is aimed at executives with at least five years of professional experience. An experienced supplier can also progress to other functions such as: supply chain manager or supply chain manager, logistics manager or purchasing director.
What are the attractions and constraints of the supplying profession?
- Strong employment opportunities
- Many daily challenges
- Numerous internal and external interactions
- Career development prospects
- Harshness of the work: working outdoors, in refrigerators, etc.
- Shifted hours (subject to deliveries)
- Stress related to managing unforeseen events and emergencies
