Less than a decade ago, delivery of goods (other than food) used to take roughly a week. Today, the item can reach the doorstep of the customer within a day. As a result, people have become accustomed to a swift-paced and efficient delivery system.
Many retailers find it tough to keep up with the increasing customer demands. So, they look towards incorporating expensive technology or hiring consultants to meet this demand. Instead, they should consider focusing on how to improve existing business strategies while being cost efficient. The answer is to improve supplier relations!
Here are some must-follow tips to improve supplier relations and optimize product delivery.
Third-party vendors or suppliers are the lifeline of a business. Keeping them content while ensuring your firm does not get the short end of the stick is complicated. To secure procurement contracts while cutting costs, developing solid relationships with suppliers is pivotal for a continuous supply chain and maintaining business longevity.
Review the Firm’s Goals and Set Expectations
Most businesses follow a reactive approach to supplier management, where they respond to a conflict or disturbance as it comes and go. Instead, follow a forward-planning approach to strategically devise an organized communication method.
Self-assessment of the business and its needs is the first step. Often, entrepreneurs design and set goals while starting their business but forget to review them regularly once it is operational.
Segregate suppliers based on various factors, including but not limited to the goods supplied, their importance to the business, and their overall performance. Rank them and decide the level of resources that should be allocated to managing them.
Draft contracts based on this, which clearly outline the expectations from all parties involved, and maintain an open line of communication with your suppliers.
Be Punctual with Your Payments
Once an agreement has been reached and business is under way, hold up your end of the deal: the payment. Just like you depend on your customers, they depend on you as a customer. Stick to the payment deadline and upkeep the integrity and honesty factor of your firm. This will enhance brand image and make paths for future talks of discounts and prioritized deliveries.
Understand Their Point of View
Your suppliers are businesses too! They are made up of real human beings working hard to fulfil your wants. Treat them with the respect that business partners deserve. To do this, frequently communicate with them and update them on business proceedings, allowing them to adjust accordingly.
Consider Hiring Industry Professionals
Once you have fixed your strategy, you can look at hiring industry experts who have experience in the art of negotiation. Every supplier has their own set of constraints that need to be understood before any communication. Getting the right people in the right place helps your firm develop a competitive edge and improve supplier relations.
