Working with those you depend on.
WHY IT MATTERS
Priority during shortage, flexibility during difficulty, and early warning all depend on the relationship.
WHAT SUPPLIERS VALUE
Being paid on time Accurate forecasts Reasonable notice Clear specifications Being treated fairly
WHY PAYING ON TIME MATTERS COMMERCIALLY
Suppliers allocate scarce capacity to customers who pay.
WHAT LATE PAYMENT COSTS
Priority Terms Willingness to accommodate urgent requirements
WHAT TO ESTABLISH
Payment on the agreed terms, consistently.
WHAT TO DO IF YOU CANNOT PAY ON TIME
Tell them before the date, with a commitment.
WHY
It preserves the relationship that silence destroys.
WHAT FORECASTS PROVIDE THEM
The ability to plan capacity and materials.
WHAT TO PROVIDE
Realistic indications of future requirements.
WHY REALISTIC
Inflated forecasts destroy credibility and produce wrong capacity.
WHAT TO ESTABLISH
Regular contact beyond transactions.
WHAT TO DISCUSS
Performance, both ways Problems Changes coming Opportunities to reduce cost
WHY BOTH WAYS
Suppliers frequently know how you could buy better.
WHAT TO AVOID
Squeezing price to the point of supplier difficulty Playing suppliers against each other repeatedly Changing requirements without notice Treating suppliers as adversaries
WHY SQUEEZING FAILS
Suppliers operating without margin cut quality, deprioritise you, or fail.
WHAT TO ESTABLISH
Prices that are sustainable for both.
WHAT TO MEASURE
Supplier performance: delivery, quality, responsiveness.
WHAT TO SHARE
That measurement, with them.
