As buyers, we often expect a lot from our suppliers, but do we take the time to consider what they need from us to perform at the standard we demand? Understanding the supplier’s perspective and effectively communicating expectations ensures we receive the best possible end product or service. Strong supplier relationships not only enhance procurement outcomes but also create strategic partnerships that benefit both parties.
Providing Clear Supplier Specifications
From the supplier’s perspective, procurement professionals can become more attractive buyers by:
- Giving clear specifications
- Paying on time
- Communicating openly
- Promoting innovation
- Not moving the goal posts
- Acting ethically and sustainably
Why Clear Specifications Matter
Incorrect or defective deliveries can disrupt operations, often because the initial specification was ambiguous. If a performance-based specification encourages suppliers to interpret requirements in their own way, buyers should be prepared for varying outcomes. Instead of reacting negatively, consider whether the lack of clarity contributed to the issue.
To avoid misalignment, consider:
- Using a conformance specification instead of a performance-based one.
- Requesting a sample or prototype before placing an order.
This ensures suppliers fully understand the requirements before production begins.
Figure 1: Types of Specification
Building and Maintaining Strong Supplier Relationships
Timely Payments Matter
Paying on time might seem obvious, but it’s critical to supplier cash flow. Like any business, suppliers manage their own supply chains, and delays in payment can impact their ability to pay their own suppliers, leading to:
- Strained relationships with their suppliers
- Reduced performance and potential service delays
- Higher costs passed down to the buyer in the long run
Long-term extended payment terms may seem beneficial, but they can create financial strain on suppliers, ultimately impacting their reliability.
The Power of Open Communication
Clear, distortion-free communication is essential in procurement. Suppliers need:
- Clear expectations – What, when, and where the product/service is needed
- Confirmation of receipt – Ensuring instructions are understood
- Two-way dialogue – Encouraging feedback and discussion
Ensuring clarity at every stage prevents misunderstandings, improves response times and strengthens relationships.
Figure 2: Communication Distortion Between Sender and Receiver
Encouraging Supplier Innovation
Suppliers often bring fresh ideas, innovative solutions, and cost-saving opportunities. By fostering an environment where they feel comfortable sharing suggestions, buyers can:
- Gain efficiency improvements
- Achieve cost savings
- Strengthen long-term supplier collaboration
Instead of resisting change, procurement teams should welcome innovation and be willing to challenge the status quo.
Consistency Builds Supplier Trust
Frequent changes in demand or specifications can make an organisation less attractive to suppliers.
If a lead time is set, stick to it whenever possible. While some flexibility is necessary, constantly moving requirements creates instability, leading to:
- Increased supplier costs
- Production delays
- Lower priority for future orders
Planning ahead and maintaining consistency allows suppliers to deliver higher-quality products on time.
Ethical and Sustainable Procurement
Ethical procurement goes beyond avoiding bribery, corruption, or fraud. Buyers should also ensure:
- No conflicts of interest – Maintain transparency in supplier relationships.
- A collaborative approach – Encourage mutual respect rather than forced compliance.
- Sustainable practices – Consider environmental and social responsibility.
When suppliers feel valued, respected, and fairly treated, they are more likely to prioritise your business.
Figure 3: Push vs. Pull Approach, adapted from Influence Company (2023)
Becoming a Valued Customer
While buyers want suppliers to prioritise their business, not all will. However, by implementing the principles above, procurement teams can position themselves as preferred customers, leading to:
- Smoother transactions
- Higher levels of trust
- Lower supply chain costs
A well-managed supplier relationship creates win-win partnerships where both parties benefit.
Figure 4: Supplier Preferencing Model, adapted from Steele and Court (1996)
This blog was written by Katie Jarvis-Grove. Looking to improve supplier management and negotiation skills? Our CIPS Level 4 explores the key concepts of procurement and supply, focusing on building supplier relationships and negotiation skills. Contact us to find out more!
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