As with any relationship, you always make the extra effort in the beginning; however, in time, you start to do less as you focus on winning the affections of new suppliers, with the long-standing supplier relationships get neglected.
Just because the older suppliers have been around for a while, don’t think they need any less attention than the newer ones. Keeping a fresh connection with suppliers old and new will make for stronger supplier relationships.
So how do you put the spark back into your supplier relationships?
Get Social With Suppliers
Socialising with your key suppliers on any level can improve the working relationship as it gives you both a chance to get to know each other better. This leads to a better understanding of the way each other works and increases trust, as well as making yourself and the supplier’s contacts feel more approachable should issues arise.
Some companies even go further than just the usual lunch meeting or evening out, they organise events; joint events give both sides a chance to work together in a different environment which offers the chance to learn more about how the other works and improving the working relationship back in the workplace, whilst also recognising the need for reciprocity in any hospitality.
Review Your Contract Management
If something feels “off” with some supplier relationships, especially if there are issues with performance, then the chances are this could easily be fixed by reviewing your own contract management processes. Take a look at what key performance metrics (KPIs) you are using for suppliers; are these still appropriate? Consider bringing in a third-party organisation to freshen things up with a creative session for you and your supplier to attend.
Many organisations ask the supplier to provide a delivery strategy that must be signed off by stakeholders before anything can begin. This is a great tactic for ensuring the supplier can perform and will help to root out any potential performance issues at this early stage, rather than having to deal with problems during the production process.
Focus On More Positive Metrics
Don’t just come in all guns blazing when trying to address any underperformance issues; put aside the risk- and cost-focused metrics for the time being, and consider discussing metrics with a more qualitative and positive focus.
Ask the supplier to work with you and offer their opinions on how the relationship can be improved. Creating a supplier charter can be a useful way to set out guidelines about how both sides should be acting. Engaging the supplier in fun activities such as team building days and other activities that will boost creativity and working relationships between teams and will strengthen the commitment on both sides to improve performance in future.
Recognise People’s Efforts
The supplier’s teams and your teams are all made up of people, and these people are the vital ingredient in successful supplier relationships. Reminding those people of the original objectives and what has been achieved so far allows you to praise the progress made so far and highlight the journey ahead; by celebrating the success of all the people involved will boost the team’s enthusiasm and creativity for future phases.
Hold Regular Strategic and Operational Discussions
Regular meetings with the account manager of your supplier account to discuss operations and strategies is a must. These discussions allow you to keep up to date on the world through the supplier’s eyes, and open your own eyes to innovative opportunities as well as and areas for improvement.
Wrap Up
Good supplier relationship management creates benefits both the supplier and the buyer, and maintaining good supplier relationships should be a top priority for any organisation to ensure continued commitment and sustained performance.
If you are interested in how to develop supplier relationships in your job role, why not study for a CIPS Diploma in Procurement and Supply. For more information about this qualification or our range of procurement courses visit our website or contact us.
