Many companies focus on maintaining a great relationship with customers, but a good relationship with suppliers is just as important. Good suppliers are hard to find and that is why every business should make efforts to keep them happy.
If you do not share a good relationship with them, sooner or later it will start affecting your business.
Let’s have a look at a few reasons why keeping your suppliers happy is important!
Keeping Suppliers Happy Is Critical For Your Business!
Here are a few reasons why keeping your suppliers happy is important for your small business!
1. Timely Delivery:
You need to have your raw materials arriving on time in order to meet orders that you have promised to your customers. What’s great about having an excellent relationship with your supplier is that they will give you first preference.
They will deliver goods ahead of time. In addition to this, they will make sure you get the best goods.
This way, you avoid returns, manufacture products quickly, and produce quality products that your customers will love.
2. Smooth – Sailing Production:
It is easy to start the production phase when you have everything you need. And since you are sure that the raw materials are of good quality, there is no risk that you will have to stop production or reject finished products (both of which could lead to a loss in revenue).
You will meet your target without difficulty.
Also, if you want to move your company to another location, you can easily restart production with your good old reliable supplier.
3. Customer Satisfaction:
Another important result is customer satisfaction. Because you are able to deliver goods and services on time and free from defects, your customers will enjoy doing business with you. They will feel that their money is well spent.
4. Repeat Business:
Customer satisfaction leads to stronger branding.
By leaving a positive impression on the customers, you are also letting them know that they can rely on you.
This also gives them no reason to do business elsewhere. Since they are happy with your service, they will stick around for more. They can even bring you new customers.
5. Great Deals:
Good supplier relationships can mean that you can avail of discounts and other attractive deals. They might also offer you a cash discount if you make your payments to them regularly, without any delays.
6. Excellent Support:
There can be times when you will get damaged goods or delayed shipments.
These can make your work difficult but you can easily resolve such issues if you have a good relationship with suppliers.
They will not behave like they don’t care, in fact, chances are they will make sure that your problem is fixed and compensate you for the trouble. This can be a lifesaver if such a problem occurs in the middle of you trying to relocate your business. You will already have a lot to handle at that time, but thanks to a happy supplier, you will be relieved.
Some Ways to Maintain Good Supplier Relationships!
A strong supplier relationship can only be achieved if both the sides appreciate what the other needs. Just like you need a reliable supplier, they are also looking for regular, reliable customers. Here are few tips to achieve the same:
1. Pay On Time:
Late payments are bad news for any business. If somebody owes you money and they don’t end up paying on time, your business can have serious cash flow troubles. Paying late lowers down the trust factor and damages the likelihood of building strong relationships.
Also, if you don’t pay your suppliers on time, they may not be able to replenish stock from their suppliers. If you have a sudden demand, your suppliers may not be in a position to help you.
2. Maintain Flexibility:
All businesses have preferred payment terms. You might practice a policy of making payments within 90 days while your supplier may want it within a fortnight.
You will have your reasons for payment terms but understand your supplier has theirs. Be open about your reasons, respect theirs and communicate to find a compromise. Flexibility on payments may also involve how you pay.
For example, if you place a large unexpected order with them that you need quickly, the supplier may ask for cash upfront. You have to understand their side too and then come to a common conclusion.
3. Give Considerable Notice:
You cannot control demand, so there will be times when you need to place last minute orders unexpectedly.
But in general, try to give your suppliers as much notice in advance as possible, even with unexpected orders. This is about showing respect, and understanding that you will not be your supplier’s only customer, they have other responsibilities to meet.
4. Review Terms Regularly:
Hold regular discussions about business arrangements to check both parties are satisfied and that everything is working as it should be. This is also an opportunity for both parties to look for improvements that could be made.
Remember, only if you have good supplier relationships, you can have a satisfied list of customers and a flourishing business.
Get in touch with Gromor today to avail an unsecured loan and expand your business!