Lack of Transparency

Lack of Transparency


Harrison Soegiarto

Food & Beverage Enthusiast


March 1, 2022

Lack of Transparency
The procurement industry is notoriously complex due to the many unpredictable elements involved. It’s uncommon to find businesses that breeze through their supply chain processes without complications. How many times have you found yourself in a dilemma on whether to compromise quality for lower cost? What about wondering if you can trust your current suppliers long term? 

Shortcomings in procurement processes come at a huge expense. If long term growth, reliable partners and consistent output of finished goods is your goal.

Keep an eye on the following shortcomings that commonly occur:

  1. Poor quality for low cost: This is one of the most common dilemmas found in every industry. In reality, having a clear budget and quality requirements will save procurement managers the hassle of dealing with such dilemmas. Communicating your realistic goals and requirements with suppliers will set the bar straight from the beginning and avoid any confusion in the future. 
  2. Lack of conducting supplier background checks: Most businesses surprisingly catch themselves in a long term contract with suppliers that don't deliver what they promised. To prevent this from happening, managers can utilize scorecards with specific criteria and assess qualified suppliers. Any false promises or failure to understand your supplier’s capabilities can certainly lead to serious issues, even in the short term. 
  3. Lack of transparency: Information sharing is a delicate topic. Although one can understand that some businesses choose to withhold crucial information for safety reasons, the disadvantages may be apparent in the long term. Lack of informational transparency sends a signal to your supplier. A signal that you limit your trust in them. 
  4. Lack of trust: Dealing with suppliers that you do not trust will be damaging for both parties. Businesses that have below trust in their partners often hold them at arm's length, and sometimes try to micromanage. Trusting your partners and sharing information can often lead to opportunities one may not be able to execute alone. 

Experts like us understand how frustrating these issues must be, especially because they are almost always avoidable. That’s why we strive to utilize technology to give your business the transparency it deserves so that you can build trusting relationships with your partners. We revolutionized the way business and suppliers get connected by providing an informational dashboard for transparency, so that both parties will have a decent sense of trust. Dealing with Reeco directly saves you time from conducting supplier background checks.

Let us experts assess high quality suppliers that are looking to do business with high quality businesses like you!

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