Vendors make or break a business. Companies often order supplies with no supplier interaction. They’re missing an opportunity. The companies crushing it right now? They know vendors can become genuine partners who help them grow.
Clear Communication Sets the Foundation
Most vendor disasters start with someone assuming something. You thought the price included freight. They thought you’d handle it. You expected Tuesday delivery. They ship Thursdays. Now everyone’s angry and pointing fingers. Write it down. All of it. It may be boring but it beats screaming matches over who said what three months ago. Get the details on paper. Send a quick email summarizing phone calls. Create a folder for each vendor with all their quirks and preferences noted.
Pick up the phone once a month. Not because something’s broken, but because relationships need maintenance. “Hey, how’s business? Any new products coming?” These casual conversations pay off hugely. Your vendor might mention they’re stuck with extra inventory you could use. Or maybe they’re beta testing something that solves your biggest headache. You’ll never know if you only call when stuff goes wrong.
Technology as a Partnership Tool
Software has completely changed the vendor game. Orders flow between computers with no one lifting a finger. Stock levels sync up automatically. Invoices pay themselves. Great, right? More time for actual work instead of data entry.
But here’s where companies mess up; they buy fancy systems their vendors hate. Or they automate so much that nobody talks anymore. Then when a real problem hits, there’s no relationship to lean on. The computers can’t negotiate rush delivery or work out payment plans.
Take supplier contract management systems. According to the experts at ISG.com, they are brilliant for tracking agreements and flagging renewal dates. Nobody forgets when contracts expire. Price increases don’t sneak through unnoticed. However, the software doesn’t replace human judgment. That’s the sweet spot.
Mutual Growth Through Collaboration
Shallow vendor relationships hurt everyone. The vendor never knows if you’ll order next month. You never know if they’ll deliver on time. Both sides waste energy protecting themselves instead of growing together. Companies that bounce between vendors chasing pennies usually lose dollars. Each new vendor means starting over. They don’t know your weird requirements yet. Their first few shipments might be rough. Meanwhile, your competitor has been with the same vendor for years. Guess who gets priority when materials run short?
Share information that helps vendors help you. Tell them you’re launching a product that’ll triple orders in June. Explain why December is dead but January explodes. Ask their advice about packaging changes. Vendors sitting on the outside can only react. Vendors on the inside can actually contribute ideas.
Creating Win-Win Situations
Squeezing vendors until they bleed creates enemies, not partners. Sure, you might save 5% today. But next year when you desperately need rush shipping? Good luck with that. Find deals that work both ways. Commit to bigger volumes for better pricing; you save money, they get stability. Pay early for a discount; you reduce costs, they improve cash flow. Accept delivery on their slow days for reduced shipping. These arrangements build loyalty that goes both ways.
Some companies still think hardball negotiation proves they’re tough. Really, it proves they’re short-sighted. The pandemic showed everyone what happens when supply chains crack. Companies with solid vendor relationships survived. The price-shoppers got crushed.
Conclusion
Your vendors directly affect whether you succeed or fail. Treat them as partners; they’ll help you in a crisis. Treat them poorly and they’ll leave when you need them. It’s simple. Be clear and communicative. Use technology thoughtfully. Find solutions that benefit all. Vendors support your success and future growth. Invest in those relationships accordingly.
