Why the Relationship with Your Supplier Is Important to Your Business’ Bottom Line

The relationship you have with your supplier is going to make or break your business. Don’t believe this nugget of advice? Look at the statistics. More than 50% of businesses will fail within five years after launch. But 79% of companies with good supply chains generate above-average revenues. Compare that with only 8% of companies reporting above-average growth with less capable supply chains. This is a telling sign of the impact supply chains have on your business bottom line.

So if you need a supplier of power cables in Singapore or other countries, you have to do your research well. Make a shortlist of the suppliers in your area. Set a meeting with them to get a glimpse of their production process. Test their products. Negotiate a deal before finally signing that contract.

This is just the start of building a strong relationship with your supplier. Signing the contract is a mere formality. You should work hard every day to communicate and clear out misconceptions. Do your part of the bargain by paying on time and not canceling the order at the right time, among others. So why go through this trouble to maintain a good relationship with suppliers?

Suppliers Control the Quality

Whether you’re into selling products or services, you will likely need to deal with a supplier. This is an unavoidable circumstance of operating a business. Suppliers have control over the components of the products you’re manufacturing and on the products you use for your services.

When you have a good relationship with your suppliers, they will tell you when they can deliver better-quality materials. They are going to suggest where to get cheaper supplies and the best time to have them delivered. You are going to get a lot of good tips from your suppliers, seeing as they’re the ones in the supply chain business.

It Is Hard to Find a Good Supplier

For many, it takes years to find a good supplier. It takes even longer to build a good relationship with your suppliers. Once you find a company that you can partner with, do everything you can to maintain a good relationship with them.

Many businesses put suppliers to the backburner. They treat suppliers as second-class citizens to their customers. That’s not how you can maintain a good supplier. Treat your suppliers the way you treat your customers. Deal with them the same way you want them to deal with you.

They Can Affect the Prices of Your Products

successful and happy employees

Suppliers can give you big discounts when you order in bulk consistently. But if you’re a difficult client to deal with, there’s a huge chance you won’t get these discounts. It means that you won’t be able to pass on that discount to your customers to make them happier and more satisfied with your business.

The relationship you have with the supplier is an integral component of your business operations. Remember that your supply chain dictates the quality and availability of every product or service. Your business will reach its bottom line faster and easier if it has a good relationship with its suppliers.