Finding your suppliers and managing relationships with them
Business Coaching Quotes
from local business coaches
You've all heard the maxim "Behind every strong man is a stronger woman"? Well the same is true in business. A business's strength lies not only in their activities and how the business is managed, but also in the base from which you do business - your suppliers. Finding the right suppliers and getting the best price from them is just as important as your customer service, marketing, delivery etc.
What should you look for in a business supplier?
Of course you're looking for suppliers that provide the services or products that you want to work with. But once you've identified the potential suppliers you're looking for reliability, price competitiveness and range, good trading terms, delivery options and quality control. You know what's important to your business - and it's usually everything!
So what do you look for to find these characteristics in a supplier?
Larger suppliers can be more reliable as they have to cash-flow to spend on stock and therefore should have shorter lead times and a better range.
- Suppliers that have been in business a while and have a solid reputation.
- Credit checks are worth asking for especially if the business is markedly cheaper than the competitors.
- Just talking to a business and asking about their processes for quality control, lead times, stock range etc is a valuable process - not only will you choose the right supplier but you'll also have a good knowledge base on which to build your relationship on.
How to find suppliers?
Online research is a helpful place to start, as are your industry contacts who would be using similar types of suppliers. Trades associations often has 'preferred' suppliers, and trade fairs are a great way to both network and find new, excellent suppliers.
Remember, even if you have suppliers that you're happy with, having another supplier on line for any back-up plans is excellent forward planning.
Managing the relationship
The best way to manage a relationship is to communicate - understand their business and let them understand yours. Share useful information and insights amongst yourselves, and don't be afraid to discuss contracts. Remember - a contract is just an opportunity to have a discussion about both of your business's common interests, not an opportunity to strong-arm anyone.
Review the supplier's performance at regular intervals and keep doing your checks on other suppliers to ensure that your chosen supplier is still competitive. It's also advisable to not put too much emphasis on one supplier, or go down the road of 'mates rates. 'Mates rates' may give you a price discount but this also often comes at the cost of excellent service. I remember a time where I purchased a set of new laptops for some staff, and a mate gave me a good rate. I only saved a small amount ($80 overall) but received the laptops in 3 working days instead of their published delivery time of 1 working day.
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When I was first starting out I jumped around from supplier to supplier and didn't know what to look for - the main thing that indicated whether someone was going to be reliable was how they handled communication - did they answer the phone quickly, did they return calls, simple things like that.
over a year ago by Keile
A business that doesn't do the little things right can't do the big things right like getting deliveries on time.
Business Coaching Quotes
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