Stay at the front of the queue – working with suppliers

It all seems so easy at first. You find a supplier, you negotiate a contract and you get your goods.

A few weeks later when the delivery is due you hear nothing. Panic starts to set in as you promised a firm delivery date to your main customer.  The following week when you do hear from your supplier it is only to hear that they will take another week or two – and it is due to their suppliers running late.

Sound familiar?

Here are a few tips.

• First – a bit of humility is called for. Your supplier has an existing customer base they will service first.
• Go introduce yourself – this is the beginning of a relationship after all.
• Have a look at their facilities and see what else they are up to. You may be surprised what you will learn from them on how to do things better and cheaper.
• Do ask how to ensure better outcomes and prices for you.
• Ensure you know how to specify your needs up front, send a purchase order promptly and pay upfront fees quickly.
• Keep in mind that big discounts are given to reward loyalty so you’ll need to order more than once. Ask about this.
• Negotiation is important, but if you try to screw them down to the lowest price on the first transaction you are damaging the relationship unless it is a pure commodity type business. Remember, once the order is placed they have the power. In other words, leave something on the table for them.
• When talking about dates indicate that you need it soon, and ask when is the best you can realistically receive it.
• Allow for extra time for schedule slippage in your own business - but don't tell them that.
• Stay in touch, and be pleasant. That way they will feel that you are working with them.
• Recognise that many suppliers are only human. For example when one of their own suppliers is late they may respond passively and say that this is just the way it is. Try working with them constructively to solve the problem.
• Demanding outcomes may help first time round, but damages your chances of a timely and quality delivery second time round.
• If you are not hearing from them, give them a call. They are busy too and may just forget to call.
• Try multiple suppliers and split the order in two.

Even with all the above, some suppliers may not work out, but at least you gave them a chance.