If you are a procurement professional, you already know the importance of good supplier relationships. You will want your supplier to deliver goods on time, at a price you like, and also to accommodate you when there is an emergency or change in demand.
While it takes effort to forge supplier relationships, here are a few things you can do to further the relationship you envisaged.
Pay suppliers on time
If you want suppliers to deliver quality and value for money, you need to pay them on time. If you delay in paying your suppliers, it will undermine trust, making it tough to forge a long-term relationship with them. Also, paying suppliers on time allows them to meet your sudden demands as they will have the funds to replenish their stocks.
Be flexible with payment-related arrangements
Every organisation has its own payment terms, but it can put you at odds with a supplier who wants quick payments. Rather than straining the relationship you have built with the supplier, it is best to be flexible with payment terms and options. Reach an agreement that suits your organisation and the supplier to help keep good relationships intact.
Have funds to hand for emergencies
Your organisation may have a sudden demand for a product, causing you to place an unexpected order. Under such circumstances, you can pay the supplier upfront. It will not only put you in a strong position to negotiate the prices but will also make the supplier happy. Happy suppliers are always willing to go out of their way to help a client.
Have regular discussions with suppliers
Hold periodic meetings with suppliers to review the terms and conditions of contracts. It will keep both parties satisfied and ensure that the relationship is working as you expect it to. These meetings are also great for making improvements in the supply chain.
Whether you are a new or experienced procurement professional, these tips will help you to build better supplier relationships.