10 ways to improve relationships with suppliers
Take a look at our 10 ways that will help you to improve your relationships with your suppliers
10 ways to improve relationships with suppliers
Hide this title
1. Clear communication
Communication is the key to any healthy relationship, and it’s a good point to keep in mind when dealing with suppliers. Communication will create transparency on both sides and prevent any disputes and mishaps, such as incorrect inventory or missing purchase orders. Communicate your business objectives that have been agreed internally with all third parties and keep suppliers up to date with how they are performing.
2. Mutual growth
Understand the capabilities of your suppliers and take the time to think about how you can mutually grow together. This will help to improve efficiencies and drive value through your own organisation and the suppliers.
3. Respect time constrains
In procurement, you’ll often find that you deal with multiple areas of your organisation every day, so this same mentality should be applied to the supplier relationship. Suppliers aren’t just working with your company, so give them the benefit of the doubt if your needs aren’t always met. Ensure that there is sufficient time to complete the process and be respectful of it. If they can’t meet deadlines, ask why to understand the reasons.
4. Create transparency through technology
Trust is critical for a constructive buyer-supplier relationship. By using a fully integrated procure-to-pay system, you’ll be able to access real-time information. This also saves time, as you won’t have to try to contact a supplier by phone or email. Technology also simplifies basic tasks like ordering more supplies and renewing contracts. Digitising key processes like these eliminates the chance of error and creates a satisfactory transaction system for both parties.
5. Accept feedback
The best way to improve, is to accept feedback. Open a dialogue with your suppliers about how you can improve as it will help build trust and loyalty. Equally, the supplier will be willing to accept feedback if it works both ways.
6. Monitor the risks
Every organisation will face risks, so you should be proactive and monitor any potential issues that could arise. By working collaboratively with suppliers, it will make identifying possible risks easier.
7. Performance management
A vital part of supply management is monitoring performance. An effective way to do this is including KPI’s in your initial agreements. Some common KPI’s can include delivery rates, purchase order accuracy, order fulfilment and lead times. This will help to establish a successful relationship as it provides an objective way to review your relationship. It also helps to reduce the risk of issues or concerns in performance.
8. Get to know your suppliers
If it’s possible, face to face interaction is the best way to get to know suppliers and build up a rapport. If it’s not possible to meet in person, set up a video call. It’s important that you understand their organisational culture, where they see themselves in the future and will also open the opportunity to discuss fresh and innovative ideas.
9. Be open minded
Be open to new pricing models or ways of working. There are many new and alternative ways that can help increase value that will save you time and money.
10. Always behave ethically
Having a reputation for being honest will stand you in good stead amongst competitors and increase your brand reputation amongst customers.
Managing supplier relationships
Listen on demand and get the latest practical insights from our panel of procurement and supply experts.
Access the latest research, whitepapers and tools across a range of key procurement and supply topics.
Expand your supplier relationship management skills
On this page