Supplier relationship management

If your business is reliant on third parties to deliver products and/or services, it is important these relationships are well managed in order to minimise reputational risk and consistently maintain customer satisfaction.

All supplier relationships to greater or lesser degree need to be understood and managed by your business, the risks mitigated and the competitive advantages that suppliers can provide developed and delivered for your benefit.

There is a reason why vendors spend a lot of time and effort in winning your business, they understand that once considered a preferred supplier they are more likely to get repeat orders with no challenge to the terms or prices on average. This can be around 40% of your annual spend on vendors. If they become really embedded they can hold the power in the relationship. This type of relationship is not healthy for your business.

We have come across many instances where a single supplier failure has led to a company to cancelling a contract and looking for an alternative in a hurry. Changing vendors can be risky and costly. If they had invested in better supplier management the issues could have been resolved, or better still, avoided early.

We can offer assistance and coaching to ensure that your vendor/customer relationships improved and managed to maximise their value to your business.