Supplier Relationship Management is a wide area and requires expertise in understanding how to continue with the existing supply chain system. It includes evaluating vendors, assessing them based on their business history and financial performance, and taking subsequent steps to nurture the relationship to its best.
In a layman’s language, it’s good to bring harmony, trust, and respect to a supplier-buyer relationship. Not to forget the significance of having a fair and transparent process.
In this blog, we’ll discuss a few tips to improve the supplier-buyer relationship. Let’s begin.
Inculcate good work ethics
When you foster the right behavior in your supplier, you feel less troubled. It’s a win-win situation when you have a cordial relationship with your supplier. So, how do you make it a point to inculcate good business ethics? You do so by stating your goals and objectives. Assess if the supplier has got all the qualities that you want. Here, we’re talking about a long-term association, and if there’s a great working relationship, you will have fewer delayed deliveries and enjoy the timely stock benefit.
Address your supplier’s concerns timely
When you start working with a new supplier, you may come across several challenges. It’s possible that the supplier lacks product knowledge or not able to understand your company’s vision. The other times, he or she can get frustrated due to over-burdening of work. You may expect orders to be delivered before time, but the supplier may go out of stock. In this situation, you should keep your cool and be proactive in listening to their concerns. Make them feel valued and try to reach a viable solution.
Communicate clearly
This point should have reached you infinite times by now. Or, you may have experienced it first-hand that communication is the key to solving any problem. If both parties can communicate properly, there’s less risk of conflicts. However, if there arises a situation where there’s more miscommunication than being clear, you should immediately reach out to the supplier and let them know about it.
Promote fairness and transparency
In business, it can so happen that your supplier delivers the goods but does not acknowledge the payment or material delivered. There’s no receipt or transaction, or you come to know of it at a later stage. All this can lead to issues, conflicts, and disputes. So, it’s better that you promote a transparent way of working. Acknowledge material and payment transactions so that there are no errors and discrepancies at a later stage.
Know about your supplier
Before you shake hands, you should check your supplier’s company credit report. It can tell you a lot about his or her financial performance and reputation in the market. Ask your colleagues and acquaintances about them, and if you find them under the business credit defaulters category, you should refrain from proceeding further.
On a related note, if you’re already dealing with a supplier or vendor that is troubling you with payments, it’s better to report them on the CreditQ platform rather than taking a legal route. They can help you settle payments with your debtors.
Here, you should emphasize learning about credit management for business. You may work on a credit basis with your vendors, and it makes sense to know more about business credit management.
If your business largely depends on the the relationship you’ve with your supplier, you should make it a point to keep up with the standards. If your supply chain hampers, you may experience issues, such as late delivery, wrong orders placed, stock unavailability, and delayed payments.
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