Most newer startups don’t really understand the power of a strong relationship with suppliers. In fact, many newer businesses prefer a hands-off approach to most of the communication they do. They prefer to rely on their own business and will rarely seek other businesses and services to help them grow. Doing things like this can be quite rewarding and it means fewer uncontrollable variables that could hinder your success.
However, it’s also a quick path to failure. Learning to trust other businesses, networking, and working with reputable companies can be extremely beneficial. In fact, strong supplier relationships can be a massive boon in many cases and is a key consideration when building a successful business. So what exactly can you expect to see from a strong supplier relationship?
Improved quality of service and products from your suppliers
Getting to know your suppliers essentially guarantees an improved quality of service and also high-quality products. Whether you’re sourcing GPS antennas for equipment or raw materials for some form of production, strong supplier relationships will be a massive help in this department.
In fact, many businesses will spend a massive amount of money with their suppliers to ensure that their businesses can continue running. It goes without saying that the success of our business completely relies on the quality of products, materials, and custom machined parts that we obtain from suppliers. By collaborating with these suppliers and establishing stronger relationships, we can solidify those relationships and outperform other businesses in various departments.
This is especially important if there aren’t many key suppliers in the industry that can provide you with the same materials and products. If there are only a handful that is available to you, then it’s vital to track performance metrics in order to determine which supplier is best for your business and also keep track of which company provides the best products.
Reduced cost by consolidating your orders
Ordering from multiple vendors can get really expensive. In fact, one of the most overlooked costs when it comes to ordering materials is shipping and customs. These expenses can get surprisingly high, especially if you’re ordering from many different overseas vendors. In order to drastically reduce these costs, you need to start thinking about consolidating all of your orders and looking for suppliers that can provide you with all of the products, materials, and other items that you might need to run your business.
Strong supplier relationships mean that you can request them to order in something specific that they might not normally have. Because they work at a wholesale level, they can typically obtain an item in much larger quantities and for a much lower price than what you would have access to. This opens up possibilities in terms of pricing and is surprisingly effective for reducing business expenses.
Most suppliers would be more than willing to listen to your plans and establish new deals, so it’s never a bad idea to tap into your strong supplier relationships and take advantage of them.