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For some suppliers, the onus is on them to keep the relationship with you in top form, particularly if they are operating in a competitive market. But in other cases, it could to be down to you to maintain healthy relations, reducing the likelihood of your supplier shifting to supply one of your competitors.
If this is the case, there are a number of things to keep in mind to make sure that your suppliers continue to provide a good service.
Good communication
It's worth putting time and effort into building good relationships with your key suppliers. It could save you time and money in the long run if you can work with them to improve the quality of the goods or services they supply to you.
If you meet people face-to-face in their environment, you can see how a supplier's business operates. You can also get an idea of their growth strategy and how this could affect the service or products you buy from them, as well as strengthening your relationship with their account managers.
Paying on time
Good communication also means placing orders in good time, being clear about your deadlines and paying on time.
Paying bills when they're due is a good way to show your suppliers that you value doing business with them. It might be worth putting automatic measures in place to help you pay on time, and using technology to facilitate this. Paying late could strain your relationship with the supplier and lead to less favourable trading terms in the future.
Ideally you should have a payment policy that commits your business to paying undisputed bills on time and a copy should be sent to your suppliers.
Preferential treatment
If you are able to give suppliers preferential treatment, you could strengthen the relationship further. This could mean going to a particular supplier first if you get a large order, and communicating to them that this is your policy.
It might also mean socialising with the supplier and inviting them exclusively to company or corporate entertainment events.
Contracts and agreements
Finally, service level agreements (SLAs) can help ensure that your supplier stays on track and delivers the service to an agreed level of quality.
The contract itself can be a complex affair, and is not to be undertaken lightly. Above all, it needs to have the agreement and cooperation of both parties to work well.
A typical SLA will include details of:
- The service being provided
- The standards of service
- The timetable for delivery
- Responsibilities of the supplier and customer
- Mechanisms for monitoring the service
- Payment terms
- How disputes will be resolved
- Confidentiality and non-disclosure provisions
- Termination conditions
- Compensation and rebates
Keep in mind that SLAs require constant discussion and updating, which again, means maintaining good communication with your suppliers.
Related information:
Business expenses - you can't put everything on the company accounts! Find out what does and does not constitute a business expense.
Improving your sales techniques - you've got your goods supplied, now how do you go about selling them on to your own customers?
Business networks - find out more about why networks will help you develop your business and how to go about finding one in our area.
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