Top 3 steps for a strong vendor relationship
Cultivating strong relationships is often the backbone of any longstanding business. However, there are certain lines of communication that require special effort and focused dedication to enable them to thrive. Suppliers and vendors are certainly an area that needs this focus, but the reward for the effort is fantastic, and enables your business to thrive.
But where do you start? How do you have confidence in your supplier relationship management? This is a two-way street of course, so you need to be sure that there is commitment from both sides for the good of all parties…
Step 1: Find your Supplier.
Seems obvious, right? Finding suppliers is easy. Finding the right supplier for you comes with a little more effort to scratch the surface. Directories, industry newsletters or trade publications will have plenty of information on what’s out there and who’s selling it. You can browse them all from the comfort of your own desk! This kind of research is brilliant at getting a sound understanding of the types of businesses and products available to you and how they are positioning themselves. However, you’re taking them at face value and barely getting to know the people behind the brand. If you want to cultivate strong relationships, it’s all about the people. Trade shows are a great way to quickly get to know them face to face, or join an industry association for regular networking opportunities.
So much of our personal and professional lives are spent online and communicating via digital means that we just get used to that way of doing things. But when the effort is made to work in the ‘real world’, you can really begin to work more efficiently, understand the partnership more coherently and communicate clearly. After all, a better relationship from the off makes for a smoother conversation should issues arise and a stronger commitment for the longer term.
Step 2: Prepare your Agreement.
So, you think you’ve found ‘the one’? They offer just what you’re looking for in terms of products and services, and you feel your connection and communication will create an efficient, valuable and strong partnership going forwards.
Every supplier relationship is different, and what you require from it can vary on a number of factors, so spending time on crafting an agreement that is detailed and unique to that relationship is key to save time (and money) in the future. Be sure to remain open during the conversations, invite them to talk more, open up and offer their suggestions, ideas and advice on how they would like to work and how they can deliver the best results for you. Talk too much and you’ll fence off opportunities you may not have been aware of.
Once you’re happy that this is the direction you want to take and you’re covering your objectives, you can get your agreement in writing to begin working together!
Job done, right?
Wrong. This is where the real work starts.
Step 3: Build that Relationship.
After all, this is just the beginning. While there will be a transition period as everyone finds their feet and understands the ebbs and flows of the processes, it’s important to remain focused and positive.
It’s really important to remain in contact with suppliers regularly. This isn’t just to raise issues or push negotiations. Relaxed conversations about launches, plans and general industry news can enable suppliers to open up and share more information in a less formal setting. Prompt replies can really help too, to keep that line of communication flowing and avoid delays in the supply chain and management of stock.
Another brilliant way to build a strong relationship is to be open to how the supplier likes to work. How do they usually do things? How they like to communicate? Having some flexibility will mean the supplier will feel supported in their role and have an incentive to deliver beyond expectations. Se this as a partnership rather than a supplier/client relationship. Of course you are the customer at the end of the day, but a more collaborative working environment means everybody benefits.
And that’s it! Our top 3 steps for strong vendor relationship management.
Ok, it does sound like a lot of work. But we promise, this effort and dedication will be beneficial in terms of time and money for the long run and create a more efficient, effective supply chain for your business.
