The business is an ongoing concept, and it is essential to maintain a close collaboration with suppliers while handling products with short shelf life. More importantly, building a solid rapport enables smooth communication and coordination in terms of schedules related to production, order quantities, and deliverables. Overstocking issues can be minimized by following Just-in-time inventory practices and flexible partnerships with suppliers.
The collaboration will also connect the suppliers closely with the firm's objectives and can modify production levels considering the real-time data. Besides, collaborative planning leads to a better understanding and maintains transparency in communication. Consequently, there will be a trust factor and cooperation, which will help to form product development and several initiatives.
Procter and Gamble have built a strong rapport with suppliers and implemented planning strategies. They actively take part in joint business planning with suppliers to form appropriate business plans that align with both party's goals and clearly understand the market and production capabilities. Also, they prioritize clear communication and information sharing with them, which comprises sales data, stock details, and market trends.