Keys to good vendor relationships during trying times
From inventory outages to incorrect orders to missed shipping dates, the era of COVID continues to be full of supply chain issues for businesses like yours.
And miscommunication with vendors can make matters worse.
To minimize the impact of supply disruptions and keep things flowing smoothly, it’s going to take open and honest cooperation between you, your employees and your vendors to form lasting partnerships.
Work together on vendor relationships
According to Financial Management, here’s how you can make sure your vendor relationships are built to last and benefit both you and the vendor.
- Consider multiple elements of vendor partnerships. Conversations need to be about other things besides the lowest cost. Can the supplier push your orders ahead of others because your company is a longtime partner? Does it consistently deliver on time? Do they offer good payment terms?
- Establish trust. Try initiating candid conversations and swap supply chain challenge stories with your vendors. It may open up opportunities for collaboration to help solve problems your supplier may be having with inventory.
- Make the vendor relationships more important than the business transaction. Your vendors need to feel like you view them as more than just a creditor. Consider something like a rewards program for vendors that meet certain key performance indicators. It shows them the value they bring to your company’s supply chain.
- Share your company’s potential future supply needs. Catching suppliers off-guard with large, unexpected orders could damage the business relationship. On the other hand, sharing data with your vendors that shows what’s going on with your business can help ensure that they’ll be able to anticipate demand and fulfill future orders.
Bottom line: When vendors feel valued and respected, it’ll make it easier to resolve supply chain issues.
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