The other side of the relationship.
WHY IT MATTERS
Suppliers are more vulnerable than customers and the conduct is less visible.
WHAT UNFAIR TREATMENT LOOKS LIKE
Paying late, deliberately Unilateral changes to agreed terms Demanding discounts after delivery Using payment as leverage Cancelling without notice or compensation Taking their ideas or designs without payment
WHY DELIBERATE LATE PAYMENT DESERVES NAMING
It is common, it transfers your cash problem to someone smaller, and it can destroy them.
WHAT TO ESTABLISH
Payment terms, and adherence to them.
WHAT TO DO IF YOU CANNOT PAY ON TIME
Tell them, before the date, with a revised commitment.
WHY
It allows them to manage, and it preserves the relationship.
WHAT TO AVOID
Silence followed by excuses.
WHAT TO ESTABLISH ABOUT SMALL SUPPLIERS
That your payment practices do not endanger them.
WHY IT MATTERS COMMERCIALLY
Suppliers who fail leave you without supply.
WHAT TO ESTABLISH ABOUT TENDERING
That it is genuine.
WHY
Requesting quotations with no intention of awarding wastes suppliers' substantial effort.
WHAT TO AVOID
Using one supplier's proposal to obtain a lower price from another Sharing confidential pricing between competitors Requesting detailed proposals to obtain free consultancy
WHAT TO ESTABLISH ABOUT SUBCONTRACTORS
That they are paid promptly once you are paid.
WHAT TO CONSIDER ABOUT SUPPLY CHAIN CONDUCT
Whether your suppliers treat their own people acceptably.
WHY
Their conduct is attributed to you, and it should concern you regardless.
WHAT TO ESTABLISH
Basic expectations of suppliers, particularly on labour and safety.
