Opening a business is easy if you have the capital to shape to your idea. However, the real test of whether your business will break ground and taste success comes when it goes operational. One of the most important facets that will help your business to cement its place and achieve new height is the relationship it has with its suppliers. It is true that today’s businesses are getting more and more customer-centric as they try to edge past their competitors. In the process they underestimate their relationship with their suppliers. They forget that suppliers are the backbone of their business.
Without a healthy relationship between the company and the suppliers, negativity and mistrust will build between parties which will lead trade relations to sour and business to plummet. Procurement managers of a company need to establish a sound relationship with the suppliers to ensure that services are top-notch and products reach the buying company within the prescribed time. This will bring efficiency in business. A mutual trust factor between the two ends will sprout and company will reach its business goals more effectively. Profits will rise which will benefit both the buyer and the supplier.
Choosing the right supplier can be an overwhelming task. With an array of suppliers hovering in the market, hooking onto the right one is essential. Long-term commitments, early engagement and demand visibility are three things which a company should look into while forging a relationship with a supplier. Long-term commitments will free the reins of both parties into investing time and money. Early engagement will allow the suppliers to arrive at the best solution to help the buyer mitigate costs. With demand visibility, suppliers will be able to prepare themselves in the most effective manner so that they can take care of the needs successfully.
Now, getting the right information about the suppliers is a crucial thing. With the help of technology, a company can understand the requirements and choose the best fit in a jiffy. Setting up the communication channels and the payment processes come next which can be met by technological tools. Here’s a lowdown on how technology can help strengthen the relation with the suppliers.
E-procurement: E-procurement tools help the buyer scan the best supplier among the melee by making a comparison between suppliers. The company doesn’t have to rely on word of mouth. They can check the ratings of the suppliers and choose the best fit.
Communication channels: A transparent and efficient communication between the buyer and the supplier is beneficial for a business to succeed. An effective communication channel will help both parties communicate on an optimistic level and bring good deals to the table.
Payment solutions: A fool-proof payment system will bring transparency and add mileage to a business. Tracking invoices and storing financial information will be easier with payment technologies. Payment information can be easily uploaded on the mutual payment site which will provide information to both parties about the transactions taking place. No need for paper receipts.
It is the interaction between a buyer and a supplier which is the foundation of a successful relationship. A healthy communication will blossom a solid understanding between the two sides and with the help of technology, the relationship will get a boost; transparency will reign and business will flourish.