Everything You Need to Know About Supplier Management

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As a small business owner, you spend a lot of time focusing on day-to-day operation and making your customers happy. But it’s important to take a step back and focus on the big picture items too. 

Due to restrictions caused by the Covid-19 pandemic, reliable, affordable, and ethical suppliers are hard to come by. Without effectively managing your supplier relationships, you could be risking disruption to your entire operation. 

Read on to discover everything you need to know about developing a supplier management strategy, and how it could affect your business: 

How Proper Supplier Management Benefits Your Business 

There are many benefits to properly managing your supplier relations. 

As mentioned above, it can help reduce supply chain disruptions and delays. This is because a well-maintained business relationship involves effective communication when dealing with any issues that arise. 

Having a good relationship with your suppliers will increase efficiency of your products and materials. This provides the predictability you need to have confidence developing new strategies. 

Loyalty over time can also help secure you better deals and rates from your suppliers. All this results in better service to your customers, and increased profit margins for your business. 

Tips for Effective Supplier Management

Understand that supplier management is not a one-and-done task. It is an ongoing process that requires frequent work to maintain. 

Here are a few tips to follow to build an effective supplier management plan:

 

  • Choose suppliers carefully – The easiest way to get along with your supplier is to make sure their values and business practices align with your own. Consider their ethics of operation and if this relationship is a good representation of your business. 
  • Establish a good process – Another good way to minimize supply chain disruptions is to establish a simple process that is easy to follow. From concept development to creation and distribution, streamline your supply chain to increase efficiency.
  • Maintain frequent communication – Communication between buyers and suppliers is vital to maintaining a strong partnership. Establish a reliable method and time slot for checking in. 
  • Understand cultural differences – When working with suppliers, especially international ones, there are bound to be a few cultural differences between people. Always be conscious and considerate of these differences, and try to remedy any potential issues before they arise.
  • Perform regular audits – Keep up with the performance of your suppliers to make sure they are meeting your expectations. Communicate any potential issues as soon as you notice them. 
  • Practice two-way respect – Remember that your suppliers are not solely your vendors. They are also running a business, and that means mutual respect is essential. Making on-time payments, practicing loyalty, and generally being friendly will maintain your end of the relationship. 

 

East Coast Fulfillment Services

Here at Cannon Hill Logistics, we understand the many moving parts that go into running a business. That’s why we provide the most reliable, affordable, and comprehensive fulfillment services on the East Coast!

From distribution to warehouse management, and even custom packaging services, Cannon Hill can do it all! Backed by our knowledgeable and professional customer service, we can create an individualized service plan to meet the demands of your growing business. Give us a call today!