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It doesn’t matter if you call them wholesalers, distributors, vendors, or

importers. They’re your suppliers and the stronger your relationship with each one,
the easier it will be to lead in your field.

Of course, having a more collaborative connection with suppliers will take time and
resources. Nevertheless, you’ll see several benefits if you make supplier
management a high priority in the coming months.

For instance, having a tighter bond with a supplier can help you mitigate supply
chain snags through more transparent interchanges. Such snags have been on the rise
since COVID hit the global stage. Yet even before the pandemic, risk reduction was
a hot topic among founders and the C-suite. Deloitte’s 2019 Global Chief
Procurement Officer Survey showed that 55% of executive-level participants were
focused on reducing foreseeable supply chain risks. Today, that percentage is
likely higher.

What other advantages will you gain by concentrating your energies on boosting
supplier rapport? You’ll waste less time worrying about procurement and enjoy
higher internal efficiencies, which will spill over into improved service levels.
And those upshots are just the tip of the iceberg.

Interested in changing the way you approach your supplier exchanges? Try these
techniques.
1. Address challenges, concerns, and ideas upfront.

When you have a concern, pick up the phone and talk to your supplier. First,
though, re-read your contractual agreement. You may have expectations that aren’t
outlined in your contract, or your supplier may not be fulfilling agreed-upon
expectations. Use your written arrangement as a springboard for honest discussions.
If your deal involved a handshake and no contract, put one together for both your
benefits.
2. Make sure you’re getting the best deal.
Do you lie awake in bed wondering if you’re paying too much to vendors? Stop
worrying about pricing and give yourself peace of mind by setting up your business
to get the best prices. As an example, you might want to join a group purchasing
organization (GPO) as part of your comprehensive purchasing strategy. GPOs give you
tremendous negotiating power because you’re not one voice—you’re part of a
collective. In addition to becoming a GPO member, try negotiating with your
vendors. You might be surprised at how open they are to shaving off dollars.
3. Pay your suppliers on time, every time.
Cash flow remains a huge worry for all businesses, including your suppliers. Sixty-
one percent of small businesses name cash flow as a huge struggle according to
Quickbooks intelligence. But you have the power to help your suppliers reduce their
cash flow headaches. How? Being the client that always pays. Not missing an invoice
shows you value them and understand their needs. Over time, you may build up enough
“relationship currency” to get special discounts for paying in advance.
4. Talk about other opportunities to work together.
When was the last time you scheduled a meeting with your top suppliers to
brainstorm partnerships? Even if you have to arrange for a Zoom or Microsoft Teams
conference call rather than a face-to-face luncheon, do it. During your discussion,
see if you might be able to help one another. Perhaps you could trade referrals or
introduce one another to key players in non-competing industries. Now is definitely
the time for creativity, and many of your suppliers will probably welcome a chance
to innovate.

5. Name a team member the SRM.

If you started your business from the ground up, you probably didn’t name a
procurement officer. That means you probably have numerous employees handling
different aspects of your supply chain. To streamline your internal system, name
someone the Supplier Relationship Manager (SRM). Having an SRM eases friction and
builds connections with your vendors. Plus, your SRM can become the go-to supply
chain expert in your company. Be sure to support your new SRM through immediate and
continuous training for best all-around results.

6. Use technology to your advantage.

Your company probably uses a wide range of technologies to improve your
efficiencies and bump up customer experience. You can also use tech solutions to
better your supplier relationships. For example, you may want to invest in cloud-
based technology that allows you and your suppliers to communicate privately. Or,
you might want to rely on technology to ensure that you are tracking inventory more
successfully. When you know what you need—and when you need it—you can share the
information with vendors.
7. Switch to suppliers that align with your vision and mission.
Maybe you’re coming to the end of some supplier contracts. On the other hand, you
might be in a stage to request supplier bids for something new that you need.
Either way, look beyond the lowest price. Instead, focus on alignment. Ideally,
your vendors and wholesalers should share your corporate worldview and branding
vision. Case in point: If you’re advertising your organization as green-friendly,
shouldn’t your suppliers have a similar mission? By associating with suppliers in
sync with what matters most to your company, you naturally build trust. Plus, your
customer base will appreciate that you don’t just talk the talk. You choose
partners based on the winning principles of customer-centric supply chain
management.
You can’t have too many allies in the business world. Be sure that your supplier
relationships aren’t just transactional. Rather, see them as opportunities to grow
industry credibility, help fellow businesses succeed, and expand your company’s
reach.