Businesses have partnerships and relationships across the industry. Without customers and client, the company isn’t going to be successful. Probably the most important connection is with your suppliers. The reason is obvious, right? They provide you with the resources you need to keep up with demand. Without the right materials, the business would fall flat and have to close its doors. It’s about keeping the supply line open to fulfill company orders.
As true as this may be, it’s not the only reason suppliers matter. Below are four more factors which put them at the top of the food chain.
There are a whole host of risks which come with dealing with suppliers. The fact that some don’t keep their promises is one of the biggest ones. Yep, certain organizations will take the money and promise the world yet come up with the goods later. Also, there are unforeseen circumstances and regulatory compliance to factor in too. In short, the wrong supplier can impact the company’s efficiency which can harm output. A quality partner is a firm which understands the risks and has backup plans from A through to Z and beyond. You need a supplier that is accountable and proactive to be successful.
Slashing the business’ expenses is an unavoidable thing. Whether you are in the red or the black, it’s the only thing you will think of for months. The unlucky ones have to focus on cutting costs for years. Suppliers hold power in the palm of their hands. A deal can be expensive if the firm needs packaging for fireworks or other hazardous materials. The majority of companies will charge a pretty penny, and it’s money you can’t afford to waste. The good news is most are open to negotiation. If you promise to buy a big shipment or use them for the long-term, they will reduce the price per unit. Also, being punctual takes away from the return and overhead costs.
People never used to care from where their products came as long as they arrived. Today, the culture is entirely different as green packaging and helping the planet matter to customers. In fact, this is true to the point that they will choose a business with the same ideals. To secure their custom, you have to prove your dedication to the cause, which isn’t too difficult. However, a bad supplier can ruin everything. If they are notorious for harming the planet, this reflects on your brand. Inevitably, customers will bounce.
The world seems huge yet there are only six degrees of separation between people. In business, it feels as if it isn’t as much as six. Everyone has contacts and aren’t afraid to use them to their advantage. Sadly, spiteful people will communicate with their “friends” to tarnish your reputation. As petty as it sounds, it has happened a million times before due to a bad relationship. Although tensions rise, you should be careful about bad mouthing a partner as they may do the same to their peers.
Can you see the importance of your suppliers now?