The laws of good business demand the need of a dependable supplier. It is in the interests of business that you have a dependable supplier chain and more importantly develop a good and mutually beneficial working relationship with your supplier. The keywords to developing a relationship with your supplier are knowledge, communication and expectations.
In today’s world of e-commerce, speed and accuracy are often the standards that set pace in the buyer-supplier relationship and therefore it becomes all the more important that this relationship be forged keeping in mind equal benefits for both the parties involved.
The following are a few headers that will help you in creating a good working relationship with your supplier:
Know your supplier: This is crucial to building a good relationship with your supplier. Meet your supplier face to face, this gives you as well as the supplier the perfect opportunity to understand each other personally as well as professionally in addition to understanding each others needs both from the supplier’s side as well as the buyer’s side.
It is vital that you know how your supplier works as you will be using his services for your business. Meet your account handlers and make sure that they are available to contact at all times.
Placing orders: One of the biggest problems that both buyers and suppliers face is with respect to placing orders. An order which is placed in time gives the supplier sufficient time to meet the deadline.
Analyzing your forecast sales in advance and knowing your supply needs can be very helpful when it comes to predicting and meeting supply deadlines. Sharing this forecast with your supplier will keep him informed well in advance and prepared.
Advance payment and clearing of dues: One of the key factors in maintaining a good relationship with your supplier is the prompt payment of bills and dues. This will motivate the supplier to work harder to keep up to your business demands as well keep him happy.
Even if you have to make advance payments, make sure that there are no delays from your end. The supplier in turn will ensure that there are no delays on his end as well.
What’s in it for me: An excellent way to reap the best from your association with your suppliers is by making sure that your business is beneficial and important to him. If you can make your business worth his while, then the supplier will work harder to step up to your supply demands. This in turn may also lead to a long term partnership with mutually beneficial deals on both sides. If you come across a business deal which can be beneficial to him, pass it on or recommend him. He will be inclined to return the favor when an opportunity presents itself.
Open and clear communications: Probably the most vital link to a good relationship with your supplier is open and clear communications. If you have any specific demands or concerns it is vital that you convey them to your supplier. Like wise be informed of any developments and expansions your supplier may be taking on which may have an affect on your business. Draw up and finalize contracts as and when and if needed to steer clear of any miscommunications on both sides.
In conclusion one must remember that the relationship between the supplier and the buyer is one of trust and dependability governed by a common purpose of monetary and commercial gains. A relationship which in turn affects the business world and the end customer.