To adapt a quotation from the poet John Donne, no business is an island. Most businesses work with a wide range of suppliers and a good relationship with suppliers is a vital part of business success. Like any relationship, lasting business relationships don’t happen, they take work, but if you do put in the time they can deliver more value.
There are several benefits to a good working relationship with your suppliers and we’ve outlined some reasons why it should be a top priority in business.
- Increases Efficiency and Optimize Performance: Good working relationships afford greater efficiency as businesses adapt to suit each other. Good working relationships with clear, open communication reduce the risk of errors, problems, delays, and quality issues. In the event issues do arise they can be handled more effectively and allow for swifter resolutions. Essentially good working relationships result in optimized business performance and improved consumer service.
- Cost Control: With a strong business relationship, you have better leverage to negotiate prices and have access to discounts and incentives that can increase your profit margin. Similarly suppliers will be keener to lower their prices to maintain a good relationship with a dependable business versus one that is too demanding or lax in their payments.
- Creates Loyalty: Good relationships are hard to come by. If you’re working with exceptional suppliers, you should be doing everything you can to reinforce your relationships with them in order to build loyalty. Aligning with your suppliers and treating them as partners can lead to decreased risks, enhanced collaboration and innovation, higher success rates not to mention preferential treatment that you might receive to honor your loyalty!
Working with suppliers’ demands your attention but by establishing a strong relationship and if managed properly it can lead to improved business performance, consumer service and greater cost efficiency enabling your business to grow and develop.