Many businesses work with their suppliers but don’t realize that they aren’t getting the most from them. Finding valuable and reliable suppliers is necessary for a successful business. In order for this to happen, there are necessary steps you must take.
Build Relationships with Suppliers
You need to figure out exactly what you want from your suppliers. After you have done this, it will be easier to create a relationship with them. With a good relationship comes certain perks, like better payment terms or discounts. It would be good to go and see the business first hand. Figure out how they operate so you know exactly how to negotiate.
Service Level Agreements with Suppliers
Make sure that you check on your suppliers so that there aren’t any problems. It is worth it to get your contract checked by a professional adviser.
You should also include a Service Level Agreement (SLA) in the contract. Use it to define benchmarks for most of the responsibilities in your relationship. Don’t forget about confidentiality!
SLA is supposed to be a guideline to make sure everything runs smoothly. It creates the criteria that the suppliers are expected to follow. If they fail then most SLAs provide compensation.
Review your Supplier’s Performance
It is always good to constantly review how your suppliers are doing. Most businesses feel that a monthly check is adequate.
You need to determine whether or not you are satisfied with their work, and if their work is worth whatever price you are paying. Everything is done to benefit your business so make sure that they are doing what you are comfortable with. Look into what your supplier’s competitors are doing, so that you can see that you are getting the best deal.
Even in a long term business relationship, you need to continue to check on both your supplier and their competitors. Everything constantly changes and after a certain amount of time your supplier may not be as top notch as you remember.
If you think that your suppliers aren’t living up to your SLA then demand changes. If they refuse then it may be time to rethink who you are doing business with.
For More Information skedaddle over to the full article: http://www.icaew.com/en/archive/library/subject-gateways/business-management/supply-chain-management/purchasing/small-business-update/how-to-get-the-most-from-your-suppliers
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