If you rely on vendors for the smooth running of your business, relationship building should be a fundamental component of your daily work operations. It may not necessarily rank highly on your list of priorities, or you may be firmly focused on boosting sales but by failing to do so, you run the risk of missing out on both additional savings and increased performance. If you are interested in building strong vendor relationships, continue reading to find out everything you need to know.
Communication is key
If you are looking to build strong vendor relationships, you must understand the importance of communication. It can allow you to nurture both successful and long-lasting business relationships and establish and maintain a long-term connection on an ongoing basis. In order to do so, you must reach out to vendors on a regular basis and schedule in-person meetings if and when necessary to allow you to get to know one another on a deeper level, ask any niggling questions or queries you may have, familiarise yourself with their working environment, and ask for further clarification on a particular issue.
Consider investing in vendor management services
If you are struggling to build strong vendor relationships, it may benefit you to consider investing in vendor management services. If you are unfamiliar with vendor management services, it is, in the simplest of terms, a series of processes that can streamline the management of an organisation’s SaaS service providers through relationship management, regular collaboration, and tracking and monitoring from start to finish. It can lead to greater risk management, lower redundancy rates, enhanced contract management, and better operational efficiency for organisations, just to name a few. It is relatively simple and straightforward to organise and can have a dramatic impact on your vendor relationships.
Prioritise prompt payments
In order to build strong vendor relationships, you must prioritise prompt payments. This can allow you to generate a greater level of trust between you and your vendors and reassure them that you respect and are able to adhere to the conditions they have set for you to follow. In addition to paying on time, you must also pay in full so your vendors can gain a better understanding of how you operate and the fact that you are, in fact, a highly reliable customer that causes little to no problems. If you ever require a favour or a helping hand in the future, your vendors may also be more likely to help you if you consistently pay them on time.
Recommend their services to your colleagues
In the business world, the power of in-person recommendations is unmatched. If you recommend the services of a vendor to your colleagues or fellow businesses, you can build strong relationships in the process. This can trigger a domino effect that results in widespread word-of-mouth marketing and may also instil greater confidence in their services. It is one of the easiest, quickest, and most profitable, ways to show gratitude for their hard work and dedication to helping your business and they are likely to appreciate the gesture and return the favour. It may also encourage them to stay loyal to your business and prevent them from abandoning your company or expanding their search for a suitable organisation elsewhere.
Seek referrals
In addition to recommending their services to your colleagues, seeking referrals can also be a great way to build strong vendor relationships. It is no secret that there is a great deal of companies to choose from when it comes to growing and developing as a business but the number of suitable options available to you remains relatively limited. If you operate within a particular category, for example, businesses may already be aware of one another and contact details can move around from business to business at an accelerated pace.
Provide lead time
In order to build strong vendor relationships that will stand the test of time, you must ensure your vendors are consistently kept in the loop by communicating business goals and providing lead time on a regular basis. In doing so, they are more likely to suggest appropriate inventory timeframes and prepare for significant orders. In addition, this can also lead to better stock levels in the long run as you grow and develop as a business.
If you are interested in building strong vendor relationships as a business, there are a number of steps you can take to streamline the entire process from start to finish. It may, for example, benefit you to communicate, consider investing in vendor management services, prioritise prompt payments, recommend their services to your colleagues, seek referrals, and provide lead time. In doing so, you can achieve greater business success in the long run by offering relevant products and touching base at every step of the way.
