Sure you can make a living selling your product independently, but you can get a higher yield from partnerships. Entering a partnership with a reliable vendor can widen your customer base. Choosing the wrong vendor would mean surrendering your brand for a small return.
Trust is key to all successful long-term business relationships. If a vendor can match your product to the needs of their customers, then you’ll have to make plans for expansion. The expansion phase alone will require support when errors occur. The last thing you need is making all of these adjustments with little back-up. In order to avoid that, here are five tips you’ll need to forge a healthy supplier-vendor relationship.
Good communication is the core of every solid relationship. It’s stronger with business relationships, as well. When selecting a vendor, try to gauge the “yes and” aspects of the conversation.
Providing clear information can allow a smoother production rate and quicker recovery when it breaks down. Tell your vendor about specific delivery dates, relocations, design changes, and expansions. This will avoid the stressful guessing games that could ensue if orders go unfulfilled.
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All business transactions should be concluded in good faith. When that good faith is challenged, then only a compromise can get things moving along again.
Working out compromises can be the hardest task, especially for start-ups. An openness about your production rates can help your vendor set realistic standards. Vendors should also lay out guidelines to their suppliers. Having multiple options in place can bring about a quicker resolution.
Good feelings between two partners can go so far when there’s money at stake. At the end of it all the supplier-vendor dynamic is a perpetual cycle designed to fulfil both parties needs. A supplier needs an accessible market for their customers and a vendor needs revenue from licensing said product.
Making payments on time demonstrates one’s appreciation of the other’s services. Nothing throws off that sense of harmony by having the check arrive late. Vendors who are timely can benefit from having their money re-invested into the supplier’s production.
Everything might move smoothly at the start, but it won’t always be that way. Developing contingency plans for every worst-case scenario can mitigate risks. Keeping to the points of those plans will take some guidance.
Successful companies keep a Supply Relationship Manager (SRM) on staff to monitor production. SRMs can generate detailed reports that are shared with the whole supply and vendor teams. These reports will highlight major risk areas. Over 30% of SRMs noted this method reinforces vendor-supplier toward producing larger outcomes.
Anything from shipping supplies to business listings can be purchased at cut-rate prices. All of those extra savings could make a difference to the quality of your product.
Vendors might charge additional fees for the use of their management systems to boost efficiency. Suppliers can lower holding fees to make room for saleable inventory. This results in greater visibility of each party.