An essential part of a successful business is a good relationship with your suppliers. However, some business owners ignore the importance of this relationship because they think that they are in a dominant position as they are the ones writing the orders. The truth is that suppliers play a crucial part in driving revenue to your business and maintaining a smooth workflow in your company’s processes. Whether your business is selling products or offering services, the growth and health of your business are dependent on suppliers.
For instance, if you are ordering parts from reliable plastic-molding companies that supply quality materials, you have to treat them like gold. By maintaining a healthy relationship with them, you can be sure that you’ll consistently deliver seamless products to your customers. Aside from the timely delivery of quality materials, a positive relationship with your suppliers can have several positive impacts on your business. These include smooth-sailing production, customer satisfaction, discounts, great deals, extended payment deadlines, and excellent support. Here’s how you can create a great relationship with your suppliers:
1. Make timely payments
Late payments can hamper your relationship with suppliers. They damage your business reputation and restricts the growth of your suppliers’ business. Financial conflicts create a negative impression, and the word-of-mouth can spread to other suppliers. On the other hand, your commitment to prompt payment will increase your suppliers’ trust in you as a business partner and motivate them to work with you. If you always pay on time, you will also be able to negotiate for better deals and receive cash payment discounts.
2. Be considerate of your lead times
Your suppliers serve other customers, so provide them with sufficient lead time to deliver your orders. Your demands should be realistic, and you should avoid changing your orders constantly. This will cause stress and inconvenience to your suppliers and strain your relationship. Improve your inventory management, so you don’t have to pressure them to rush your orders.
3. Get everyone on the same page
Other people in your company might not be aware of the importance of a great supplier relationship. It will be hard to achieve your goal if others are not putting their best foot forward. It’s not enough to set a highly visible example to make sure that all of your employees are on the same page. You might need to hold training sessions to orient them on the principles and processes about creating a good partnership with suppliers.
3. Practice the tradition of gift-giving
Show your gratitude to your suppliers by giving them gifts on special occasions. The custom-made corporate gift will let them feel that you appreciate your continued partnership and give you the one up on your close competitors.
It’s a bit challenging to find reliable and dedicated suppliers. So when you have them, work hard to create a long-lasting relationship with them. Remember that if you want to succeed in the market, your primary goal should be building a partnership that goes beyond financial transactions. It should be a relationship that is based on mutual trust, respect, and loyalty.