How to Establish a Good Relationship With Suppliers

Since suppliers provide the essential goods and services to run a business, owners should focus on what they bring to an operation instead of what they cost. Suppliers provide quality materials and help you acquire what you need in a pinch. To meet your goals, you'll have to ask them to go the extra mile. Establishing a relationship with a supplier is much like growing a client base. It requires a solid track record of professional behavior combined with a personal touch.

1. 1.

   Pay on time. Your suppliers are in business, just like you are; they want to get paid as much as you do. If you foresee that you might have problems meeting your obligations, work out favorable contract terms before signing. If something unexpected happens, call your suppliers and talk to them. Your best bet is to reach out to them before they begin to call you to follow up on overdue bills.

2. 2.

   Get to know them. It's easy to get caught up in email communication, but face-to-face contact and the occasional phone call is important. Visit their offices and invite them to company functions. Doing lunch and meeting for coffee is also a way to network with suppliers and build up a personal rapport. Suppliers can be advocates for your business; their industry contacts might in fact become your clients in the future.

3. 3.

   Make their job easier. Give your suppliers adequate lead time and communicate your needs on an ongoing basis. Crises can't always be averted, but if you're the client who repeatedly calls suppliers with last-minute jobs, they won't be happy. Don't expect your suppliers always to anticipate your needs. What you request might be distinct enough to require more time, or what you want might not even be clear. Work with suppliers if they need to puzzle through what it is you need.

4. 4.

   Share information about your business. Keep suppliers in the loop about changes in key staff, new product lines and special promotions. This lets suppliers know you value the relationship. It also provides them the opportunity to market more of their services to you if they spot an additional service they can offer. Also, if you let them know you're running a promotion that could increase the volume of sales, they can be better prepared to fulfill an order which is larger than normal.