How to strengthen supply relationships as a buyer:
Thorough Independent Analysis
As Brexit develops, the value of procurement has never been so prominent. This area of business to business consulting is seeing increasing interest from businesses who need an independent analysis of their costs and operations. As supply chains become the hardest challenge, procurement firms are providing the answers many are seeking for through their independent analyses and vast networks that offer better deals.
Make Sure Your Supply Works For Your Individual Company/Sector
A one size fits all approach just won’t work when it comes to supply chains; businesses need to know and mitigate the possible threats in the supply chain frameworks of their sector.
For example, retailers look toward international suppliers to ensure their products and materials meet the fashion trends of the time. Manufacturing companies look to source cheaper materials, but are often vulnerable to fluctuating costs, while construction companies tend to stick to one reliable supplier typically within the same country due to tight scheduling.
Investigating and pinpointing the framework of successful supply chains in your sector will help you mould a more prosperous supply chain of your own. Whilst regular reviews, that are available with Expense Reduction Analysts, will ensure that your supply chains are continually working toward your goals.
If your supplier (new or old) is not meeting your expectations, you may need to speak with them regarding shared objectives.
Keep Up The Conversation
Communication is key to ascertaining a durable relationship with suppliers, both old and new. Not only does this allow you to gain more information about your suppliers you may not have been privy to before, but it also means they have a comprehensive knowledge of your business operations which brings benefits like suggestions for innovative products, discounts, faster delivery and provide support beyond their contractual obligations.
With a procurement specialist, you get the benefits of this type of relationship with their established connections.
Remember You’re Not Their Only Client
You appreciate what it’s like to deal with several customers at one time, so you have the ability to empathise with your suppliers who are dealing with the same pressure. They know you need your products and that you are working to tight deadlines but giving them some flexibility and being accepting that Brexit is causing major disruptions their side will make them appreciate your custom, which, in turn, will motivate them to prioritise your work as one of their favourite clients. This doesn’t mean you should put up with slack service but showing a little understanding will go a long way in building a stronger supplier relationship.
Why Not Reduce Your Payment Terms?
Extended payment terms are a pain for suppliers. Why they mean you have more cash available in your pocket, waiting for payments can be toxic for a supplier relationship. If you’re willing to be flexible regarding your payment terms, you can keep a closer eye on your expenditure, whilst also cementing a stronger relationship with suppliers who will be willing to go the extra mile for you– and this is a priceless asset, especially as we navigate life before and after Brexit.
If supply chains are a significant concern for your business, get in touch with us today. We can help you streamline your supply chains to be future-proof. Working as an extension of your purchasing team, we derive the best value from every part of your supply chain– whether that is negotiating a better contract with your existing supplier or identifying a new alternative with a healthier outlook. And with regular reviews ensuring your business is on the right track, you will never need to worry about supply chains again!