Supplier relationships are crucial because they enable open communication of ideas and feedback between your company and its suppliers.
This will eventually result in a more efficient, streamlined supply chain that will improve costs and customer service.
Without a strong supplier management procedure, suppliers can come to view their customers as merely negotiating partners uninterested in collaborative growth.
If this occurs, they might not feel motivated to give their best services to meet the demands of your business. This can lead to disrupted supply chains, delayed product releases, and impaired brand recognition.
Ways To Achieve A Good Relationship With Your Company’s Suppliers
- Ensure mutual agreement
- Be a good customer
- Schedule regular feedback
- Mutually decide payment methods
- Reward good service with loyalty
1. Ensure mutual agreement
A mutual agreement is necessary to have a healthy working relationship with your suppliers.
Any goods, materials, or even services (like processes receiving e-invoices) that you receive from your suppliers must be of good quality and have warranties or return policies that correspond to your expectations to foster strong supplier relations.
To ensure this, it is important to choose suppliers for whom these values are also paramount. Furthermore, create standardized ordering procedures that are mutually agreed upon to ensure simple and quicker transactions between both parties.
2. Be a good customer
Respect the methods and needs of your suppliers and make it simple for them by adhering to their procedures and deadlines. Also ensure to provide items like purchase order numbers, business details, and insurance certificates promptly.
To save your suppliers’ time and prevent them from having to resend items, pay on time and keep your records organized.
For example, availing of a service like an invoice approval workflow that provides an automated checklist of the steps you need to take to validate and pay an invoice will significantly reduce the time required to approve invoices allowing you to make quicker transactions and deals.
If you’re a great customer to your suppliers, they’ll treat you the same way—going above and beyond to take care of you.
3. Schedule regular feedback
To run a good business, both you and the suppliers must be committed and mature, open to honest communication as well as the capability of having unpleasant conversations when necessary because strong, two-way communication is essential for successful business relationships.
Maintain contact with your suppliers and make an effort to arrange a time to meet up for a drink. Discuss areas for improvement and consider what is functioning well.
Having the chance for feedback from both parties on what has been beneficial or challenging can catalyze coming up with creative solutions to further solidify the partnership. If at all possible, try to speak with suppliers or their representatives in person.
Mistakes and misunderstandings are inevitable. Therefore, it’s crucial to resolve any issues as they occur and work diplomatically with your supplier. In the event of a disagreement, always give your provider a chance to contribute to a solution.
4. Mutually decide payment methods
With the advancement in technology, many businesses have updated their payment processes to include e-invoicing and other automated accounting services because it allows for quick and effective financial transactions. Therefore, it is essential to discuss and mutually decide what payment method is preferred by both parties.
Additionally, pay all of your bills on time. Make sure to notify your provider in advance of the due date if you will not be able to pay on time.
5. Reward good service with loyalty
Reward your provider with your loyalty if they have acted in your best interests. Both parties must be committed and mature, and there must be open and honest communication as well as the capability of having unpleasant conversations when necessary.
Suppliers’ businesses will experience ups and downs, just like everyone else’s. So, before breaking off a relationship with a supplier, make sure to carefully explore the causes of the issues. If you try to be loyal even in difficult circumstances, the suppliers will likely extend their understanding when you are in a similar situation.
Maintaining a good relationship with the suppliers is very crucial to the smooth running of a business. Some of the ways to achieve this are by ensuring that you mutually agree about values and payment methods, communicate well and honestly, and exhibit loyalty and appreciation of their goods and services.