Trustworthy suppliers serve as the backbone of a successful supply chain. Searching for them can be difficult and time-consuming, but maintaining a strong bond with them is worth the wait. The mindset of an organization must change while maintaining a healthy relationship with the suppliers.
Organizations must work with a positive approach to build a smarter and healthier bond with the supplier from a long term prospect. They should not dominate with all the power as these suppliers are a crucial asset to an organization especially when they are reliable.
Let’s dig into ten pro tips to build cordial and strong relationships with suppliers.
- Establishing Clear Expectations:
Communication is key for a strong relationship. Before beginning your business, set the stage to assure everything runs smoothly from the beginning and highlight the expectations to set common goals.
Your procurement team should be active in providing key metrics wherever required. The supplier should share the billing methods to avoid any confusion in the future.
This is an ideal time to set suppositions for both parties regarding volume, lead times and security protocols. Also set clear objectives about strong performances and chances for any mistake on each side.
The crucial aspect of detailed expectations is to accept accountability for your business. If you fail to meet any assurance or rush with too many orders , this should be handled on equal grounds the way you approach an issue from the supplier side.
- Enhancing Business Relationships for Success
Business success is not only about tackling different responsibilities but also building a strong relationship with the people involved in your business. Simply sending birthday or Christmas wishes can bring a smile to your supplier’s face and add a personal touch of goodwill.
You can have a friendly bond with their family as rapport outside your workplace elevates the bond beyond simple transactions.
These efforts not only build trust between you and your suppliers, but also make business dealings become less stressful by handling circumstances together like a family.
- Regular Information Sharing in Business
Information exchange allows you to have open communication between you and the supplier. Relevant information should be shared constantly, as the supply chain is unreliable and often termed as an “ever-shifting beast”.
Any change in lead times or shift in demand must be immediately communicated to the supplier to avoid excessive inventory or loss in business. An inevitable rise in issues will not hinder the sharing of information and will facilitate both of you in limiting damage to either side of the supply chain.
- Watch out your Competitors
Competition in the supply chain is intensifying, making business security more crucial than ever. It’s important to monitor who your suppliers are partnering with. If they supply your competitors, it’s wise to explore other options that can provide you with a competitive advantage.
While sourcing from China may sometimes mean dealing with fewer reliable suppliers, it also offers cost savings and a wider variety of products. Therefore, partnering with a sourcing company can provide benefits such as better prices and access to a broader range of products, greatly benefiting your business.
Additionally, signing a non-disclosure agreement (NDA) to protect your product designs and copyrights is a good idea. This builds trust and safeguards everyone’s interests. It not only protects your ideas but also strengthens your relationships with suppliers, ensuring they remain reliable and innovative.
- Your First Order is Crucial
Even in business, first impressions matter. When you start working with a supplier, make sure your first order meets the deadline and is paid immediately. In a few cases it can be beneficial to fly out and visit the supplier in person while they are finalizing the first order. Paying them quickly and meeting them personally also leaves a great impact on the beginning of a positive relationship.
- Avoid common blunders:
There are several mistakes that can damage relationships, especially in the initial days of business dealings. One of the most common is late payments. For this or any other issue, communication is the best way to reach a solution before the problem further worsens.
On the other side of the picture, delaying orders or issues surrounding product specification can immediately lead to mistrust between both of you. If you notice that late deliveries or miscommunication is quite frequent don’t assume that the problem will fix itself. Identify and highlight the issues to the suppliers and look for other options to save your time.
- The Importance of Both Sides in Transactions:
While drafting business friendly strategies keep suppliers in mind, as they are businesses like yours so the perspective must be taken into account by both parties.
Instead of considering yourself in a dominating position, consider this as a partnership and you will see a door opening for different opportunities with positive impact on both sides.
Ask yourself about unique options that suppliers can provide or what pricing they can offer that is competitive. This approach will help them think of you in a broader perspective.
- Risk mitigation Strategies:
Risk mitigation is one of the powerful tools that must be considered while drafting strategies to handle different situations. Shortages and ongoing trade wars are real time factors in today’s world. Also, think of natural disasters and issues that arise from the suppliers’ end. How will we work together to reduce the damage in this situation?
Discussing these issues while building a relationship of trust verifies that you won’t be blinded when these issues inevitably arise.
- The Necessity of Revisiting Business Terms
The supply chain witnesses shifts and changes to meet the requirements of business around the globe. Even your supplier is adapting different strategies each day.
Keeping this in mind, it’s quite obvious that your original terms will last through the coming years. Sit with your suppliers and make necessary changes to suit both of your needs. This can bring opportunities knocking your door and drive more value to your business.new design can upsurge the worth and more efficient components can be added if your suppliers agreed to supplement you.
Adopt the change you witness in the industries and open up discussion to modify strategies.
- Leveraging Technology for Collective Success
Innovative technology is crucial for the digital transformation of your business. Organizations are adapting change through different softwares, and cutting edge tech like machine learning to modify their business needs. These changes bring countless benefits for supply and ultimately give ease to sourcing companies in China.
Visibility and exposure is the need of every company and achieving an upper hand is only possible through accepting adaptability towards technology.
