Top strategies to take your Supplier Relationship Management a notch higher

Top strategies to take your Supplier Relationship Management a notch higher

The success of modern businesses does not depend on an effective Customer Relationship Management alone. It goes way beyond that, and a solid Supplier Relationship Management is just as important as customer management. With hundreds of suppliers out there, it becomes challenging to find the best fit and use the best strategies to strengthen relationship with them.

After all, in today's modern business world - supplier management does not end at choosing at most cost effective one in the lot. Putting in efforts to build and strengthen relationship with suppliers is very important in determining the success of any business. Here are some best practices or strategies that you can employ to up your game of Supplier Relationship Management.

#1 - Timely payments are not to be neglected

Just like you expect your suppliers to supply their products or services to you in time, it is important you make timely payments to them. For suppliers to continue supplying to you, it is crucial that they think you're a reliable customer who is prompt with payments. If for some reason, you cannot make a payment - ensure that you communicate the same to your supplier and let them know when they can expect a payment. Numbers are important in any business and untimely payments decreases your credibility as a reliable customer.

#2 - Your suppliers are your partners

The perspective through which you see your suppliers changes the entire ballgame for you. When you start looking at your suppliers as your partners instead of just-another-vendor, you'll see that your relationship with suppliers will strengthen. Keep your suppliers informed about a new product or service that you plan to launch, let them know briefly about your business processes, make them feel heard and let them know that they're an integral part of your business family.

#3 - Focus on value based services

It is not always about the price. Yes, price is one of the key factors you will look for in a supplier and as a general rule, you should typically go ahead with the ones who offer the most cost-effective prices. But remember that you don't make pricing the sole criteria for choosing your suppliers. What value they add to your business and how compatible they are with your working processes is also as important.

Spending a few bucks extra on a supplier who is loyal and has integrity is worth it. In the long run, you should focus on working with suppliers who are flexible, understand your needs and provide you the best value for the price you're paying.

#4 - Outline detailed agreements with your suppliers

If you're receiving services from your suppliers for any term more than 3 months, it is essential you have detailed Supplier Agreements. These agreements must have all the relevant details which are important to both you and your suppliers. Include all the terms and conditions in your agreement that clearly specifies the product description, the frequency of purchase, the delivery Turn Around Time, the mode of payments and so on.

Such agreements will keep things clear right from the beginning and will be super useful in case of a disagreement. As a matter of thumb rule - it's always good to lay everything out on a paper.

#5 - Invest in a dedicated Supplier Management Software

When your business is expanding, managing every tiny detail about your customers and suppliers becomes complicated. Keeping a systematic track of your purchase orders with your suppliers, ensuring that all payments are made on time and tracking if the stock of your business is maintained at an optimal level at all times are important tasks where you can't afford to make mistakes.

To maintain a systematic record of all these tasks above and other details about what payment is due to which supplier and so on, consider looking at effective Supplier Management Softwares that are out there in the market. These softwares are designed to make your work easy and hassle free. A little investment in this light will pay off well in the long run.

Any business that plans to be successful and to sustain its success, should not underestimate the importance of maintaining a solid Supplier Relationship Management. Use these strategies consistently in your business to notice a healthy upgrade in your Supplier Relationships.