No person’s an island, and that’s never as true as it is in trades. No business operates entirely on its own, and if you put a key supplier offside you’ll find yourself stranded pretty quickly.
Often, the supplier relationship is overlooked and not given the attention it deserves.
Why it’s important to have a good relationship with suppliers
Having great suppliers as part of your business improves both your service to your customers as well as your efficiency.
A good relationship with a supplier can also provide you with a much-needed business supporter who can provide a fresh perspective and encourage business to come your way.
After all, if your business is growing, so will your suppliers’ business.
To maintain a great supplier relationship, you have to approach it in the right way.
READ: Supply Chain Management: Core Processes and Best Practices
How to have good relationships with your suppliers
Just because you’re paying out money to your supplier doesn’t mean that you’re always the customer and the power is with you. It needs to be a two-way street.
You want your supplier to want you as a customer just as much as you want them as your supplier. This means being fair, reasonable and flexible as required.
1. Choose suppliers that align with your values
If excellent customer service is important to you then choose suppliers for whom this is also paramount. It’s vital for good customer relations that any products, materials or services you supply your clients have warranties or return policies that match your own.
It’s a bit like personal relationships – it’s very difficult to maintain a relationship with a person who differs in core values.
When selecting suppliers consider their ethics, values, positioning and reputation.
READ: How to develop a supply chain strategy
2. Understand your suppliers’ needs
What’s important to them? Do they need you to follow a process or complete paperwork in a certain way?
Respect their way of doing things and make it easy for them by following their processes and timelines. Give them what they need, when they need it. Stay on top of supplying things like insurance certificates, business information and purchase order numbers.
READ: Your essential guide to supplier management
3. Be a great customer
Think about what you love about your customers and do the same for your suppliers. Pay on time and keep your records in order so you don’t have to waste your suppliers’ time by getting them to re-send things.
In the same way that you go the extra mile to look after a great customer, so will your suppliers if you are a great customer to them. Putting some deposits in the goodwill bank can be very helpful if you need a favour from your suppliers at a later stage.
4. Maintain regular communication
Keep in touch with your suppliers and try and schedule a time to get together over a coffee or a beer. Reflect on what’s working well and talk through areas for improvement.
Having the opportunity for both parties to provide feedback on what’s been helpful or difficult can be the spark to develop innovative ways to strengthen the relationship even further.
5. Give timely feedback
Don’t ring up and yell at your supplier if stuff isn’t going right. Instead, be calm and direct so things don’t fester and become the proverbial storm in a teacup.
Despite the very best preparation and planning, mistakes and miscommunication can happen. It’s important to tackle them with your supplier quickly and in a professional manner. Always allow your supplier the opportunity to be part of a solution.
In a good supplier relationship, it’s essential to speak up when something is wrong.
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6. Reward good service with loyalty
Many businesses complain that customers aren’t very loyal these days and are always chasing the best deal. Are you doing the same thing with your suppliers?
If your supplier has done the right thing by you, reward them with your loyalty – just the way you like to be rewarded.
Business relationships are a two-way street. One party doesn’t hold more power over the other – it requires commitment and maturity from both sides.
Understanding each other’s perspectives and respecting differences is key, along with an understanding of how each party benefits themselves as well as each other.
It requires open and honest communication, and the ability to have difficult conversations if required. It’s worth it though, as a great supplier relationship can make a world of difference in serving your customers and lowering your own stress levels.
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As an expert in business relationships and supply chain management, I can affirm that the dynamics discussed in the provided article are crucial for the success of any business, especially in the realm of trades and manufacturing. The importance of a strong and mutually beneficial relationship with suppliers cannot be overstated, and the article touches upon several key concepts that resonate with my in-depth knowledge of the subject.
Firstly, the article rightly emphasizes the interconnected nature of businesses, highlighting the fact that no entity operates in isolation. This aligns with the fundamental principles of supply chain management, where collaboration and interdependence are essential for smooth operations.
The concept of choosing suppliers that align with your values is a critical aspect of supplier management. It reflects an understanding of the significance of shared values, ethics, and reputation in sustaining a long-term partnership. This resonates with my expertise in advising businesses on strategic supplier selection based on not just cost-effectiveness but also ethical considerations.
Understanding your suppliers' needs is another key point emphasized in the article. This underscores the importance of effective communication and a willingness to accommodate each other's requirements. Having a clear understanding of the supplier's processes and timelines is a cornerstone of successful supply chain management.
Being a great customer, as outlined in the article, involves more than just making timely payments. It involves building trust, maintaining transparency, and ensuring that the relationship is a two-way street. This aligns with my extensive knowledge of fostering healthy business relationships that go beyond financial transactions.
Regular communication and feedback are critical elements in supplier relationship management. This aligns with best practices in supply chain communication, where regular updates and collaborative problem-solving contribute to the overall efficiency of the supply chain.
The article also rightly emphasizes the importance of addressing issues promptly and professionally. This resonates with my expertise in crisis management within supply chains, where addressing challenges proactively is crucial to prevent disruptions.
Finally, the concept of rewarding good service with loyalty is a testament to the symbiotic nature of business relationships. Loyalty from both parties fosters a collaborative environment, contributing to the overall success of the business. This aligns with my knowledge of incentivizing and recognizing suppliers for their excellent service.
In conclusion, the principles outlined in the article align seamlessly with my expertise in supply chain management and business relationships. Implementing these strategies can undoubtedly contribute to the success and resilience of businesses in the competitive landscape of trades and manufacturing.
