Monday 9 March 2015

Tips to Improve Relationship with Vendors

Authored by  Junaid Khan 

Relationships between buyer and vendors always lead to favorable prices. World largest solution provider always engage with vendors because optimal productivity along the entire supply chain requires solid supplier-customer relationships, efficient and effective processes, sufficient supporting technology and a value-for-money focus as defined by the end customer. Following are few tips to improve relationship with vendors.

On Time Payment
The first and very important tip for building vendor relationship is on time payment. As many organizations have adopted eProcurement systems therefore vendors work on thin margin. So daily cash flow is very important in this scenario. A vendor even small one, that pays on time as per policies become trusted business partner for organization.

No Blaming Tactics
Mistakes are the nature of very business and we keep learning from our mistakes. Very vendor make mistakes but if buyers will continue blaming the vendor, the situation will get worst and at the end organization will suffer.

Need Realization
If vendors are getting on time payment after smooth supplies without any complaint then you can share your future requirement with them on the basis of trust and worthy.

Clear Requirement Visibility
Communicate your required items to vendor with proper specification and quantities which will help vendors to manage accurate supplies as per requirement of organizations.

Open Communication Lines
This is simple tip but perhaps the most important practice. Invite your suppliers to your strategy meetings, let them tour your office, include them in business events and parties, and share information about new products and personnel. Likewise, you should be able to visit your supplier’s offices and know the ins and outs of their business.

Effective supplier relationship management is the best way to ensure optimal supplier performance and help you run your small business more efficiently. Investing in high-quality software is a start, but actively taking the above steps will build even better relationships.