7 Ways To Improve Your Supplier Relationships

It doesn’t matter if you call them wholesalers, distributors, vendors, or importers. They’re your suppliers and the stronger your relationship with each one, the easier it will be to lead in your field.

Of course, having a more collaborative connection with suppliers will take time and resources. Nevertheless, you’ll see several benefits if you make supplier management a high priority in the coming months.

For instance, having a tighter bond with a supplier can help you mitigate supply chain snags through more transparent interchanges. Such snags have been on the rise since COVID hit the global stage. Yet even before the pandemic, risk reduction was a hot topic among founders and the C-suite. Deloitte’s 2019 Global Chief Procurement Officer Survey showed that 55% of executive-level participants were focused on reducing foreseeable supply chain risks. Today, that percentage is likely higher.

What other advantages will you gain by concentrating your energies on boosting supplier rapport? You’ll waste less time worrying about procurement and enjoy higher internal efficiencies, which will spill over into improved service levels. And those upshots are just the tip of the iceberg.

Interested in changing the way you approach your supplier exchanges? Try these techniques.

1. Address challenges, concerns, and ideas upfront.

When you have a concern, pick up the phone and talk to your supplier. First, though, re-read your contractual agreement. You may have expectations that aren’t outlined in your contract, or your supplier may not be fulfilling agreed-upon expectations. Use your written arrangement as a springboard for honest discussions. If your deal involved a handshake and no contract, put one together for both your benefits.

2. Make sure you’re getting the best deal.

Do you lie awake in bed wondering if you’re paying too much to vendors? Stop worrying about pricing and give yourself peace of mind by setting up your business to get the best prices. As an example, you might want to join a group purchasing organization (GPO) as part of your comprehensive purchasing strategy. GPOs give you tremendous negotiating power because you’re not one voice—you’re part of a collective. In addition to becoming a GPO member, try negotiating with your vendors. You might be surprised at how open they are to shaving off dollars.

3. Pay your suppliers on time, every time.

Cash flow remains a huge worry for all businesses, including your suppliers. Sixty-one percent of small businesses name cash flow as a huge struggle according to Quickbooks intelligence. But you have the power to help your suppliers reduce their cash flow headaches. How? Being the client that always pays. Not missing an invoice shows you value them and understand their needs. Over time, you may build up enough “relationship currency” to get special discounts for paying in advance.

4. Talk about other opportunities to work together.

When was the last time you scheduled a meeting with your top suppliers to brainstorm partnerships? Even if you have to arrange for a Zoom or Microsoft Teams conference call rather than a face-to-face luncheon, do it. During your discussion, see if you might be able to help one another. Perhaps you could trade referrals or introduce one another to key players in non-competing industries. Now is definitely the time for creativity, and many of your suppliers will probably welcome a chance to innovate.

5. Name a team member the SRM.

If you started your business from the ground up, you probably didn’t name a procurement officer. That means you probably have numerous employees handling different aspects of your supply chain. To streamline your internal system, name someone the Supplier Relationship Manager (SRM). Having an SRM eases friction and builds connections with your vendors. Plus, your SRM can become the go-to supply chain expert in your company. Be sure to support your new SRM through immediate and continuous training for best all-around results.

6. Use technology to your advantage.

Your company probably uses a wide range of technologies to improve your efficiencies and bump up customer experience. You can also use tech solutions to better your supplier relationships. For example, you may want to invest in cloud-based technology that allows you and your suppliers to communicate privately. Or, you might want to rely on technology to ensure that you are tracking inventory more successfully. When you know what you need—and when you need it—you can share the information with vendors.

7. Switch to suppliers that align with your vision and mission.

Maybe you’re coming to the end of some supplier contracts. On the other hand, you might be in a stage to request supplier bids for something new that you need. Either way, look beyond the lowest price. Instead, focus on alignment. Ideally, your vendors and wholesalers should share your corporate worldview and branding vision. Case in point: If you’re advertising your organization as green-friendly, shouldn’t your suppliers have a similar mission? By associating with suppliers in sync with what matters most to your company, you naturally build trust. Plus, your customer base will appreciate that you don’t just talk the talk. You choose partners based on the winning principles of customer-centric supply chain management.

You can’t have too many allies in the business world. Be sure that your supplier relationships aren’t just transactional. Rather, see them as opportunities to grow industry credibility, help fellow businesses succeed, and expand your company’s reach.

Speak Your Mind

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Get in Touch

350FansLike
100FollowersFollow
281FollowersFollow
150FollowersFollow

Recommend for You

Oh hi there 👋
It’s nice to meet you.

Subscribe and receive our weekly newsletter packed with awesome articles that really matters to you!

We don’t spam! Read our privacy policy for more info.

You might also like

Warren Buffett Says These Often Ignored Traits Separate Successful...

Warren Buffett once asked a group of students to think of a classmate they felt...

There Must Be 860 Ways To Build An AV...

DARPA started it all. With the Grand Challenge a decade ago – with researchers competing...

Sensex vaults over 360 points in opening trade on...

MUMBAI: Equity benchmarks sensex and Nifty piled on gains in opening session on Tuesday...

Former WWE Superstar Shad Gaspard Goes Missing Near Venice...

Former WWE Superstar Shad Gaspard has been reported as...