For a business to survive in the long-term, constant collaboration and smooth partnership with suppliers is the key. This leads to innovation, momentum and profits for the business. Here are a few techniques that are often overlooked by businesses when looking to improve relationships with suppliers.
Treat at par
If suppliers are treated as partners and not vendors, the change in language can go a long way in improving the relationship between the supplier and the business. The business revolves around clear partnerships rather than a tug of war on who is a superior entity. Suppliers are to be treated at par considering their services are sought keeping the needs of the business in mind at an agreed fee.
Personnel exchange can help both parties involved – supplier and business to take innovation to the next step and improve their chances. This can be through embedding one of the supplier teams into business or through a staff exchange.
Suppliers pay a regular visit to business procurement teams. A good impression at the first instance can help register well in the good books.
Pay attention to profits
Is the business profitable? Unless the business is profitable, there would be no room for innovation and creative pursuits that can help the business going forward. Suppliers also seek business clients who can offer them profitable financial sheets.
Appreciation through reward
Just like it is a good practice to reward the outstanding performers of a school, it is a good practice to appreciate and reward the suppliers who are day-in and day-out performing at their best and providing the best quality supplies. Though many believe that suppliers should perform at their optimum no matter what, in the realistic world, an agreement focussed only on penalties may not find favour for a long time that can be detrimental to the existence of the business in the future.
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Author – Aval Sethi, Founder