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How to get the most out of your supplier relationships

How to get the most out of your supplier relationships

Let’s simplify the situation and agree that all companies need reliable suppliers. When companies find such suppliers, it is vital that you treat them with respect. You should work hard to create a good relationship with them, just as you do with your clients.

Well-organized cooperation with suppliers will influence your company's efficiency. Let’s define the most important areas that directly depend on successful coworking between supplier and buyer.

Quality

The supplier can positively or negatively influence the goods or services produced. High quality will increase your number of customers, which in turn cuts costs and increases revenue.

Meeting deadlines

Timely delivery of products is critical to how reliable customers perceive you to be. Operational supply optimizes the production process, leading to risk reduction and avoiding unnecessary reserves and extra costs.

Innovation

Suppliers can make a significant contribution to the development of your new product. Remember that they are more product-oriented than you are. Exceptional suppliers will understand your company, your industry, and the needs of each.

Finance

 If you have previously proven that you are an attentive and solvent customer, you can ask your suppliers for additional financing during crisis periods. This assistance can take the form of investments or loans.

All these components can increase your company’s income. In addition, there are several simple rules for you as a buyer that will make you a welcome partner to suppliers.

On-time payments

Before placing an order, you can negotiate the requirements regarding payment; however, you shouldn’t try to change the terms later on. You will get the best results by following these simple rules:

Personalize relationships

Visit suppliers’ offices and invite them to business parties and picnics.

Share information

Inform suppliers about changes to your company; for example, new products or promotions. In the future, this will attract new customers to your company.

The tools for building good relationships with suppliers are limitless. Demonstrate that you have excellent communication qualities: talk about your needs, be honest, and pay on time.

 

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