Tips to improve vendor relationships

[Source: www.nffs.org/] "Move Your Supplier Relationship Beyond the Transactional

These days, suppliers are eager to work with you to solve complex problems, such as trimming costs and achieving excellence benchmarks in lean-and-green development and delivery. Why not challenge each other to think beyond conventional solutions and methods? Even supplier relationships that are purely price-based contain untapped knowledge.

Streamline Decision Making

Invest in maintaining the right contact information in your supplier information management system. After all, updated and accurate data is critical for the rapid communication flow that feeds innovation.

Systemize the Relationship

Establish a 360-degree information system and mitigation/corrective action plan to ensure relationship survival beyond current assigned teams. Include agreed-upon key performance indicators, risk monitoring, and protocols for open communication and transparency.

Innovate, Don't Formulate

Don’t just copy Wal-Mart, Toyota, and Dell. Your situation is unique. Analyze it, and identify areas for improvement. A formulaic approach to supplier restructuring might mean reducing total number of suppliers by 20%

Pick Up the Phone

We are always surprised at how few companies talk to their suppliers on a regular basis. Site visits are optimal, of course. But, in today’s economy, everyone is cutting back on those. So, it’s even more important to check in with your suppliers personally, even by phone. Personal relationships are fundamental to collaborative supplier relationships."