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Managing Supplier Relationships Print

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Working with manufacturers and importers.

WHAT SUPPLIERS WANT

Volume Payment on time Coverage of the territory Their brand represented properly Market information

WHY MARKET INFORMATION MATTERS TO THEM

They cannot see the market without you.

WHAT PROVIDING IT BUYS

Better terms, support and priority.

WHAT TO PROVIDE

Sales data Competitor activity What customers say Where demand is growing

WHAT TO NEGOTIATE

Buy price and volume breaks Payment terms Delivery frequency and cost Support for promotions Returns of damaged goods Notice of price changes

WHY NOTICE OF PRICE CHANGES

It lets you buy ahead or adjust your own pricing.

WHAT TO ESTABLISH ABOUT SUPPLY RELIABILITY

Their lead times and whether they are met What happens during shortages Whether you are prioritised

WHY SHORTAGES MATTER

Out-of-stock on a leading brand loses customers to competitors permanently.

WHAT TO TRACK

Order fill rate: what proportion of what you ordered actually arrived.

WHAT A LOW RATE INDICATES

A supplier you cannot build a business on.

WHAT TO ESTABLISH

Alternatives, for any critical line.

WHY

Single-source dependency in distribution is dangerous.

WHAT TO AVOID

Depending on one supplier for most of your revenue.

WHAT TO MAINTAIN

A relationship beyond transactions.

WHY

Allocation during shortage goes to distributors they know.


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