How we can establish good relationship with our supplier?

 
Two type of supplier exists: 1) Raw Materials Provider and 2) Finished goods Provider.
Let us focus on the Raw Materials Provide for a while: This is an individual who sources
or provides items, in this case, raw materials to manufacturing companies at a suitable
price. They supply your business with the right materials, finished products and/or
services to be able to conduct business. Having good relationships with suppliers
means that you can find and receive goods and services at the right price within the
right time frame.
Suppliers do not only supply your business with products and other physical supplies;
they may also supply a service to your business. These suppliers could include:

1. Banking and financial services

2. Utility services
3. Property suppliers
4. Internet and phone services
5. Insurance products
 
These are tips that can help organizations to establish good relationship with their
suppliers:
 

1. Set up regular times to communicate with your suppliers.

2. Discuss issues or concerns in an open and honest way.
3. Actively listen to advice and feedback.
4. Provide feedback and report issues early.
5. Keep track of your supplier’s performance.
6. Agree on a standard ordering process.
 
 Maintain relationships with your suppliers
 
Your relationship with suppliers can directly influence your business. Once you’ve found
the right supplier it’s important to develop a productive and professional relationship
with them.
The following tips can help you establish good working relationships with your suppliers:

1. Set up regular times to communicate with your suppliers.

2. Discuss issues or concerns in an open and honest way.
3. Actively listen to advice and feedback.
4. Provide feedback and report issues early.
5. Keep track of your supplier’s performance.
6. Agree on a standard ordering process.
7. Pay your accounts on time.
8. Stay organized and try not to change or rush orders.
As your business is important to you, it is even more important to your supplier, but also
remember, that you are just one of their many customers. Give your suppliers the
benefit of the doubt if your needs are not instantly met, be a great customer to them.
 
What are some of the qualities of a good supplier? Name at least 2?
 
5 qualities of a good supplier:
 
You can found suppliers with these five qualities and be confident that you have found
relatively good suppliers:
 

1. Accountability
Admitting to a mistake can be difficult. But when your goods are on the line, it’s
essential that you’re working with someone that can take responsibility for their half of a
deal and actively work to fix any problems that occur during manufacturing. That’s why
accountability tops the list of qualities of a good supplier.
A supplier with accountability will take responsibility for the quality
problem and work forward to address it quickly.
But a supplier without accountability is more likely to deflect responsibility. They might
tell you the quality of the fabric was poor and difficult to work with. If you used a third-
party inspector to check the goods, the supplier might accuse the inspection company
of incompetence or of being unprofessional.
Allegations of substandard raw materials or misconduct from a third-party should be
investigated. But a supplier that won’t own up to their own mistakes can hinder your
ability to meet deadlines and product requirements.
Look for signs of accountability in a supplier early on in your relationship. A good
supplier is an accountable supplier.

2. Production capabilities
The ability to actually manufacture the product you want is one quality of a good
supplier most importers are especially familiar with. In fact, many importers tend to
focus so much on production capabilities of a prospective supplier that they overlook
other vital considerations. But knowing with confidence what a supplier can actually
deliver is harder than simply talking to a third-party supplier representative.
A good supplier should be able to consistently manufacture a product that meets
your requirements. Without having the necessary procedures and skilled staff at the
factory, your supplier is going to fall short of meeting your standards.
How do you know if a supplier can meet your standards?
Visiting the factory
The only way to be sure of a supplier’s production capabilities is by going to the factory.
Some importers that aren’t sure what to look for or prefer to avoid the cost of traveling to
the factory might rely on a third-party to audit the factory based on ISO 9001 or a similar
standard. In either case, you can learn a lot about a supplier by verifying areas such as:

1. Material and finished product inventory;

2. Incoming quality control, in-process quality control and final quality control;
3. R&D (important if you plan to develop new products);
4. Machine and equipment maintenance and calibration; and
5. Certifications or licensing (e.g. business license, export license)
Many suppliers will tell you they can supply the products you need. But a truly good
supplier will allow you to verify claims by visiting or auditing the factory.
 
Obtaining and approving a product sample
This second method of verifying supplier production capabilities are less reliable than an
audit, but generally easier to conduct. By requesting that a supplier send you a product
sample to approve before moving ahead with mass production, you can get an idea of
whether the factory can meet your product requirements. You can also send the sample
to a lab for testing to confirm product standards.

3. Ease of communication
Language and cultural barriers can present real challenges for importers buying from
suppliers overseas. You’ll benefit greatly from working with a good supplier that’s easier
to communicate with. Effective communication can prevent a variety of problems
ranging from delays to product nonconformities.
What defines “effective communication”?
English-speaking staff
This first mark of effective communication is obvious. If you don’t speak the supplier’s
local language, you’ll probably want your main point of contact to be English-speaking.
More and more factories are hiring sales staff with at least a basic understanding of
English. While it’s rare to find a supplier with contacts that speak perfect English, more
often than not, there’s someone capable enough to handle requests from customers in
English. Still, despite English abilities, misunderstandings can be very common,
depending on where you’re manufacturing.
Open and direct communication
Open and direct communication is one aspect of a good supplier that few importers
really appreciate. It may be reassuring to know that your supplier employs English-
speaking staff. But communication problems often arise from the way a supplier
communicates, rather than language difficulties.
Have you ever worked with a supplier that withheld information from you because it
wasn’t what they thought you wanted to hear? This is very common when production
delays occur. You may have agreed to a particular shipping date the supplier later
discovers they can’t meet. But instead of being direct and telling you right away, your
contact may underestimate the delay or wait for you to ask about it yourself.
A good supplier is open and direct. They know that you may have made promises to
your own customers, and it doesn’t help to keep you in the dark about a bad situation. If
there’s a change to the status quo, they tell you upfront. If they need clarification about
requirements, they ask for it. Pay attention to how your next supplier communicates with
you.

4. Cooperation with third-party QC

Most people don’t like to have someone looking over their shoulder and meticulously
checking their work. But third-party inspection has become a fairly standard requirement
for most importers good supplier manufacturing in Asia. And a good supplier will comply
with an importer’s request to have an outside inspector verify the product before it ships.
Outside oversight can actually help the factory by:

1. Pointing out defects the factory’s own QC staff might have missed;
2. Suggesting possible causes for any production problems;
3. Recommending preventative or corrective action to solve problems; and
4. Giving the customer peace of mind
A supplier’s resistance to a third-party quality control usually calls for concern. Such a
supplier may be trying to hide an issue from the importer. Some suppliers will try to ship
the goods quickly before you have a chance to raise concerns.
Better suppliers typically book inspections on time and provide assistance for inspectors
on-site. If problems are found during inspection, they provide objective feedback about
the results and advise what can be done to resolve issues. The same suppliers are also
open with their internal documentation and processes when being audited.

5. Ethics
Ethical sourcing has made its way into the spotlight. As larger brands make headlines in
recent years for social compliance violations in their supply chain, countries have taken
steps to outlaw goods made with forced labor.
Many importers don’t want to be associated with a product made by workers that are
treated unfairly or working in unsafe conditions. By choosing to work only with good
suppliers that meet popular social compliance standards you can be sure that:

1. Your products are not made with slave or child labor;

2. Your products are made in safe working conditions;
3. Retailers you supply do not refuse to distribute your product; and
4. The reputation of your brand is protected from negative press surrounding
unethical sourcing
Ethics may not be the first thing that comes to mind when you’re looking for a good
supplier. But it’s not difficult to audit a supplier or prospective factory for social
compliance. And disregarding ethics entirely could lead to problems down the road.
Finally, it is not always easy to identify a good supplier immediately. But after some
early communication, you should be able to qualify one by looking for these five traits.
Just because a supplier is convincing and shows you a few amazing product samples
does not mean you should overlook how they actually function. These traits will help
you sort the good from the bad and help you determine if using a particular supplier is
best for your supply chain, your customers and your business.