Suppliers are an essential part of your business development and survival. Your strategy towards suppliers must be part of your plan, because every company, whether product- or service-oriented, depends on suppliers. However, people seem to have a misunderstanding concept about their suppliers. They take advantage of their dominant position, leading to unreasonable demand in their written purchase to the suppliers. If you want to find an answer on how to avoid supplier issues, change such a paradigm to get things right. Make your supplier as your partner, so your business can work well without much hassle.
Admittedly, everyone wants to have super and reliable suppliers. When once you find them, treat them well. Develop a relationship with a supplier like you work with every business partner you have and be fair because they are crucial to your business growth. Get a grip and Learn more about how to be a good partner with your supplier below.
Why Should Be a Good Partner
Being a good partner with your supplier is essential as you have to explore all possibilities of how your company might be affected. Whether you receive a part, product, or service, suppliers can influence your product’s quality positively or negatively. It means it relates to your business satisfaction, which might reduce and increase the return on investment and income. Besides, your reliability also depends on the amount of inventory you have, because obsolescence is perceived badly by customers.
If you have a good supplier and be a great partner, it helps your competitive level to offer a service with the best price and quality. Your supplier can even contribute to the innovation regarding your product using a technology breakthrough. Never forget that suppliers work at the edge of the product’s production, making them the one who understands to execute innovative products. This way, your cash flow works better to send you a stable income. More importantly, being their loyal and care customer might comes in handy when you have a shortage of money to negotiate your liquidity position.
Why Is It Right to Be a Demanding Customer
While being able to aware of the supplier importance has been built, it does not mean you have to be supplier pleaser. Being a demanding customer is justifiable but in a fair manner. Describe your quality standard and time clearly and do it based on the agreement with your suppliers. Be competitive and ensure you let them know that you intend to go in the long run as they maintain their operations and speed with yours.
There are times when you want to replace a supplier as they cannot keep up with your business. Let them change as you educate them. If it is not successful, you can throw them bones, hoping that they will develop and improve properly. However, it is not wise to trust only one supplier. In case they have a blow, you do not want to go down as well. Developing a second or multiple suppliers is acceptable and do not feel shy to tell it to your key supplier because honesty is appreciated in business.
How to Be a Valued Customer
Expect to get a good service from a supplier is acceptable, but being a valued customer is a must if you want to maintain a good relationship with them. There are certain ways you can do to be a valued customer, such as paying your bills on time. Of course, you have negotiated payment terms before placing an order. However, once the agreement has been made, never try to change the rules or break them. Also, be a considerate customer by giving an adequate lead time so that suppliers can properly provide your orders. Share your demand and be honest regarding the estimation involving a competitive reason. If necessary, include suppliers in your strategy meetings in the office, or visit theirs to let them know and being involved. In short, you have to share information with your supplier to accompany your business target. Tell them the key importance of your business supplier. Who knows, they can help you get new customers.