You can familiarize yourself with the list of approved suppliers, where a supplier is defined as a company or person who makes goods available for another business or service.
Suppliers are known as the number one link in the supply chain, forming only B2B relationships and supplying goods to manufacturers, in rather large quantities.
In today's competitive market, suppliers are essential to almost every business as they help them get the most out of their products by sourcing raw materials and finding better options for raw materials as the market begins to become saturated, and many manufacturers are focusing on their suppliers as a means of achieving a long-term competitive advantage.
Forming a positive relationship with suppliers and sellers
When you think of the supply chain, it should go like this, supplier > factory > distributor > seller > customer, so, the supplier is the first link in the supply chain while the seller is the penultimate part of the supply chain.
But whatever order they come in, you should try to choose good suppliers and suppliers as part of your growth plan and form a positive relationship, or else you are likely to regret it.
One of the many reasons to collaborate more effectively with your suppliers is that they can become important sources of information, helping you assess the potential of new products, track competitors' actions and identify potential opportunities.
You should view your list of approved suppliers as a partnership relationship that must not only be based on financial transactions, but also on mutual trust and loyalty.
Make your suppliers feel part of your business by letting them know about your operations, such as new product releases and promotions, and listening to their concerns.
Sellers can also become partners, helping you cut costs, improve product designs, and even fund new marketing efforts.
Believe it or not, having fewer vendors can be better than having many vendors due to administrative costs and you can form closer relationships with fewer vendors, allowing you to work together to control costs.
Consider suppliers and vendors as part of the team, communicate often and candidly especially when it comes to contracts and deals.
Using a collaboration platform like ours can avoid supplier conflicts by making sure discounts are paid on time or at least honestly address late payment issues and talk to the supplier or seller about it.
Be upfront and transparent with suppliers and sellers, and make sure they understand your needs and expectations at all times.
In the long run, having a win-win relationship with suppliers and vendors will give your business a competitive advantage.
Key Differences Between Suppliers vs Sellers
We have already learned that both suppliers and sellers supply goods or services, but suppliers distribute goods and services to those companies in need while seller is not involved in distributing products.
Another major difference is that the term vendor can be used for both B2C and B2B relationships, while the term supplier is usually only used for B2B relationships.
The seller also has a variety of products for sale, which the end user generally buys in small quantities.
Similarly, supplier usually sells a certain type of merchandise in bulk, seller has no direct contact with the manufacturer while suppliers have direct contact.
On the other hand, the seller has a direct and close relationship with the customers unlike the suppliers.
Another difference is that sellers usually provide ready-to-go items, while suppliers deal more in raw materials that will turn into something else.
Therefore, vendor relations usually focus on price comparisons, while supplier relations focus more on how a supplier affects product quality.
Build good relationships with your list of approved suppliers
It pays to invest time in building good relationships with your key suppliers, if you can save money or improve the quality of the goods or services you buy from your suppliers, your company will benefit.
Tips for dealing with your suppliers
Consider some of the following when working with your suppliers:
Meet your contacts face to face and see how their business is doing. Understanding how your supplier operates gives you a better idea of how it can benefit your business.
Get to know the people who will be managing your account and make sure it's easy to get in touch with them.
Ask about their plans for development or expansion, will this affect the goods or services they provide to you?
Help your suppliers by submitting orders in a timely manner, being clear about deadlines and paying on time.
Pay attention to any opportunities you can pass up - in a good customer-supplier relationship they will do the same for you.
Make your business important to your suppliers and they will work hard for you. Some suppliers from your list of approved suppliers may offer better deals if you promise to use them exclusively.
How can you help your major suppliers
It is in everyone's best interest that you do well with key supplier relationships. Suppliers require careful attention, as their performance can be critical to your business.
Here are some of the ways you can help your key suppliers:
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Coordinate your production schedule with theirs.
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Discuss ways to reduce overall costs through volume or timing of orders/contracts.
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Consider additional products or services that your supplier can provide.
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