The benefits of good customer-supplier relations

Suppliers are a company’s primary sources of supply for products and services. They are the key to the entire supply chain, no matter how complex. As such, they play a vital role in the survival of any business. That’s why it’s so important to nurture the relationship you have with your suppliers. A company that takes care to maintain good relations with suppliers can make all the difference in the market in which it operates. A good customer-supplier relationship brings many benefits to the company, and is a key to success in the business world. In this article, you’ll discover the main advantages of a good customer-supplier relationship, and some tips on how to maintain it.

What are the advantages of a good customer-supplier relationship?

A good customer-supplier relationship involves, first and foremost, knowing and complying with regulations. Secondly, maintaining the relationship you have with your partners can prove highly profitable for you and your business, whatever the sector or field in which you operate. Here are the 4 advantages that a good customer-supplier relationship can bring you. regulations

Increase your competitive edge

The first facet of a good customer-supplier relationship is constant communication between the company and its suppliers. Through such communication, both supplier and customer gain insight into the workings of each other’s business. This interaction enables your company to educate and coach your suppliers on aspects such as:

  • your internal management system ;
  • your preferences in terms of the characteristics of the products and services you supply ;
  • your marketing and communication system ;
  • your company’s customer base and their product preferences ;
  • the quality and prices you offer ;

A supplier who is aware of all these aspects will be able to tailor the services and products he provides to satisfy the customer company. The latter will then be able to offer competitive prices in its market and gain a certain competitive edge.

Establish a solid, long-term customer-supplier relationship

When communication between you and your suppliers is good, and they have all the information they need about you and your company, it’s easy to build trust. In this way, you create a relationship based on trust, which is stronger and more long-term. These suppliers will then elevate you to the status of an important or loyal customer. You’ll then be able to benefit from better-quality services and, often, price discounts. This privileged relationship can then develop into a partnership between the two parties over the long term,if everyone benefits.

download our supplier database template

Improve the performance and quality of your products and services

The communication you establish with your suppliers, and the documents and information you make available to them, will enable them to offer you quality services. With the knowledge of this information, the supplier will be able to offer you products that better correspond to your customer category and your company’s requirements. For your part, since you have certain information about the way your supplier’s business operates, you can highlight areas or facets of each service that he can improve for better performance. You can also encourage innovation.

It’s not out of the question for a company and its supplier to work together on innovative solutions, developing products and services not yet available on the market. The supplier will be the first to offer such products, and you the first company to market them. It’s a two-way relationship and a win-win partnership.

Increase customer satisfaction and loyalty

It goes without saying that with top-quality products and prices that defy all competition, you’ll offer excellent value for money. As a result, your customers will be satisfied with what you have to offer, and won’t hesitate to come back. It’s easy to build customer loyalty. Similarly, with an excellent marketing strategy, you can easily increase the number of your company’s customers and thus generate greater sales.

learn more about weproc

How to establish a good customer-supplier relationship

With all these advantages in mind, you might be wondering how a company can go about building a good relationship with its suppliers. Here are a few tips to help you establish such a relationship and reap the benefits it offers.

Clearly define your needs and requirements

This is the prerequisite for any supplier search. You need to know what your company’s needs are, what raw materials you need to produce at low cost, what features you want your products to have to satisfy your customers, and what your requirements are in terms of price, delivery times, and so on. This step will enable you to start sourcing your suppliers. Finding suppliers who meet your criteria will be quicker and easier. Once the supplier relationship has been established, it will also enable your supplier to learn more about your company, so that he can better satisfy you.

Carefully consider which suppliers to choose

During your research, a number of suppliers will come forward. They will provide you with documents such as requests for quotations, price proposals and company information. Take the time to study these documents. As mentioned earlier, a customer-supplier relationship is not to be taken lightly. The suppliers you choose must meet your criteria. After that, it’s a matter of negotiation to adapt what suppliers offer to your needs: prices, product quality, delivery times, payment methods and terms, order fulfillment process and other facets of the services offered.

Establish good communication with your suppliers

Communication is essential to a solid, lasting relationship. So establish good, ongoing communication between you and your suppliers. Provide them with all the information they need to offer you quality services. They will then be able to get to know your company and offer services that are best suited to you. You’ll also be able to give your opinion on any of the services they offer, so you can improve them for better performance. And don’t hesitate to think with your suppliers about how to innovate and develop the products they offer. This will benefit both parties.

The SRM solution

SRM stands for “Supplier Relationship Management“. This solution provides the company using it with the tools to generate profits from exchanges with its suppliers, while at the same time improving supplier relations. More specifically, SRM enables :

  • improve the company’s communication with its suppliers;
  • improve the company’s knowledge of the products and services it offers, and the financial advantage offered by its suppliers;
  • share information between the two parties;
  • improve supplier management ;
  • build a solid, long-term customer-supplier relationship.

suppliers are a company’s primary sources of supply, and the key to the supply chain. Maintaining good relations with them is therefore essential to a company’s survival. What’s more, there are numerous advantages, such as better product quality, better service, lower prices and, ultimately, greater customer satisfaction.

 

Want to learn more about our procurement management software Weproc? Contact us or request your free 15-minutes demo below!


5/5 - (1 vote)

Leave a Reply

Your email address will not be published. Required fields are marked *

Newsletter

Recevez chaque mois nos meilleurs articles ! En bonus, nous vous mettons à disposition nos nouveaux modèles de documents en avant première. 

Alors, pas mal non ?