The Importance of the Supplier Relationship

In business, you’ll work with many companies that supply goods and services. Running a successful business relies heavily on the relationships you build with customers, employees, stakeholders, and suppliers.

Implementing a good supplier management system can benefit your company in many ways. The better the relationship and understanding, the more likely you are to receive a top class service, preferential rates, and flexibility when you need it.

Have the right attitude

Your fundamental approach to your suppliers will set the tone for your relationship. Yes, they are there to provide you with goods and services but you need to see it as a reciprocal relationship. Don’t act heavy-handed, as if you are doing them a favor by giving them your business. This will only breed tension within the supplier relationship that might come back and bite you at a later date.

When choosing your suppliers, go online, and do your research first, you need to work with a company that shares your ethos.

Communicate regularly

If you only contact your supplier when you need something from them, you’re missing out on the opportunity to build a real business relationship.

Treat them fairly

Your supplier is running a business too, so you should extend them the same courtesy you would expect from them.

Pay your bills on time – cash flow is vital to every business. If you are constantly paying your suppliers late, this can have a real impact on their business. You’ll be seen as an untrustworthy client and may not be able to negotiate flexible terms when you genuinely do need to pay a bill late.

Review your contract terms on a regular basis – regular contact to ensure that you are both happy with your arrangement, products, contract terms, and account management is great for identifying problems early and really building a rapport.

Don’t be ‘that’ client – you know the type we mean. The one that puts in last-minute orders or demands and almost impossible turnaround on an order, threatening to discontinue the relationship should their demands not be met.

Occasionally, the supply and demand nature of business means that you might have to place orders after the deadline or with really tight timescales. A supplier with which you already have a great relationship is going to bend over backward to try and accommodate you. If, however, you spend your time being unreasonable and demanding, then you’re going to find yourself disappointed. True, they may accommodate you now because they can’t afford to lose the business, but when they are less dependent on you, they will start refusing to supply you.

Key takeaways

The supplier relationship is important, but it needs to be worked on to get the very best out of it. Respect, trust, and communication are the key. In time you’ll build excellent relationships that will benefit your business in many ways both financially and professionally.