Let’s look at some tips that will help with the management of our suppliers:
Choosing providers
Much of the success of our business will depend on the suppliers we have. Good suppliers have not only provides us with quality inputs and, therefore, to offer quality products, but also allows us to have low costs, the security of knowing that we always have orders on time, etc.
Therefore, whenever we have to choose a provider, we must take our time and thoroughly compare and evaluate different alternatives that exist, taking into account criteria such as price, quality, payment terms, delivery terms, warranties, etc..
Take the suppliers and partners
Before taking to the provider as a competitor, we must take it as a partner or ally.
If we take it as a competitor and, for example, the pressure to reduce their prices, if we convince it ultimately could be affected in its economy and decide to reduce the quality of the products we supply.
On the other hand, if we take our supplier as an ally, for example, help to improve its processes and reduce their costs, if we do this, could be more efficient in its delivery, or it could improve its economy and decide to give higher payment facilities.
Maintaining good relations with suppliers
One way to make a supplier as an ally is to develop and maintain good relations with him.
To maintain good relations, we must treat kindly, make the payments on the agreed dates, invite them to important business events, etc…
Maintaining good relations with our suppliers allows us to have good coordination, good communication (and, for example, to anticipate the problems and, in any case be able to resolve them quickly), to make them more flexible with us, to achieve give us more credit facilities, etc.
Constantly evaluate providers
Whenever we evaluate the performance of our suppliers, we must evaluate whether their products maintain the same quality as always, if timely delivered orders, if they meet the deadlines, if they comply with the agreements, etc.
We must avoid falling into the habit of always having the same provider, constantly evaluate and, in doing so, always have the possibility to replace it if necessary.
Constantly look for new suppliers
Just as we constantly evaluate the performance of our suppliers, we must also constantly look for new suppliers.
We must constantly seek suppliers with better products, prices or conditions, watch for the emergence of new providers, or see if we already knew providers have improved their products or conditions.
It is always advisable to have more than one supplier, and even though we will not use all the suppliers we select, it is always advisable to have them handy, in case anything happens, for example, that the first supplier cannot give supply, cannot meet the required deadlines, or to any emergency.