What do suppliers want

If the quality and effectiveness of your supplier decreases, your business may suffer. As well as financial barriers to changing suppliers, you will also face operational ones.

There may be disruption to your business when you switch to a new supplier with different processes or systems. Make sure that your existing supplier gives you all the information you need to make the transition smoother. If possible, negotiate so that your new supplier takes responsibility for handling the changeover process.

To avoid such problems you should think about the possible pitfalls of ending a contract early at the contract negotiation stage. For example, if the contract is for customised software, you should make sure that ownership of intellectual property is clearly defined at the outset. It is a good idea to have guidelines in place for dealing with ending a supplier contract and help you to avoid alienating a supplier you may need at a later date.

Explain to the supplier why you are ending the contract. They may be able to offer you a better deal - and save you disruption - by lowering the price or raising the quality of goods or services they provide. Our information is provided free of charge and is intended to be helpful to a large range of UK-based gov. Because of its general nature the information cannot be taken as comprehensive and should never be used as a substitute for legal or professional advice.

We cannot guarantee that the information applies to the individual circumstances of your business. Despite our best efforts it is possible that some information may be out of date. As a result: The websites operators cannot take any responsibility for the consequences of errors or omissions.

You should always follow the links to more detailed information from the relevant government department or agency. Any reliance you place on our information or linked to on other websites will be at your own risk. You should consider seeking the advice of independent advisors, and should always check your decisions against your normal business methods and best practice in your field of business.

The websites operators, their agents and employees, are not liable for any losses or damages arising from your use of our websites, other than in respect of death or personal injury caused by their negligence or in respect of fraud. Click on one of the two buttons to access the content you wish to view. COVID Remote personalized support Our physical offices are closed, but our advisers remain at your disposal to help you plan the resumption of your activities. Guide Manage your suppliers Share on:.

Finding a reliable and competitively-priced supplier is vital to the success of your business. The terms that you negotiate with your supplier need to be based on: the way that you pay them — bank draft, commercial bill paid for by bank, foreign currency potential costs - administration, taxation, transport, general payments and transactions possible risks - late payment to supplier, or faulty, late or undelivered goods.

Get quality service from your suppliers Building good relationships with suppliers How you can help your key suppliers Use technology to improve efficiency Service level agreements Review your suppliers' performance Ending supplier contracts.

Meet your contacts face-to-face and see how their business operates. Understanding how your supplier works gives you a better sense of how it can benefit your business.

Meet the people who'll be managing your account and make sure they can be easily contacted. Ask about their plans for development or expansion. Top Stories. Top Videos. Improvement of products through contributions to product design, technology, or ideas for producing new products. In most such instances, suppliers help buyers by pointing out ways in which designs can be improved or more desirable materials can be used. Improvements in product quality. In addition to providing design recommendations that result in improved products, suppliers are often sources of suggestions that allow buyers to hold consistent tolerances in production.

Improvements in "speed to market. Reductions in total product cost, either through streamlining of work processes inventory management, new product design, scheduling, etc. Improvements in customer satisfaction. Commitment to quality—Not surprisingly, product quality is regarded as an essential factor in selecting a supplier. Specifics in this realm include the suppliers' statistical process control methods, its QS registration, its approaches to problem solving and preventive maintenance, and its methods of equipment calibration.

Cost-competitive—Competitive pricing is another huge factor, especially for businesses that are smaller or experiencing financial difficulties.

Communication—Suppliers that do not maintain a policy of open communication—or even worse, actively practice deception—should be avoided at all costs. The frustrations of dealing with such companies can sometimes assume debilitating dimensions.

Moreover, constant exposure to such tactics can have a corrosive effect on internal staff. Timely Service—Businesses' strategies are predicated on schedules, which in turn are based on receiving shipments at agreed-upon times. When those shipments slip, business strategies suffer. The blow can be particularly severe if the supplier is negligent or late in reporting the problem.

Flexibility and Special Services—Many purchasers express appreciation for suppliers that take extra measures to satisfy their customers.

These "perks" can range from after-hours accessibility to training or inventory support. Market Knowledge—Suppliers with extensive knowledge of market conditions and mastery of contemporary issues impacting your business can be immensely valuable in helping small companies chart a course to sustained financial success.

Production Capabilities—the supplier's capacity for program management and production should be considered, including its ability to integrate design and manufacturing functions, its approach to design changes, and its program measurement features.

Financial Stability—Businesses that allocate large sums for purchasing materials often prefer to make long-term deals with suppliers that are financially stable.

Such arrangements not only convey security, but they allow companies to learn about one another and gain a fuller understanding of each business's needs, desires, operating practices, and future objectives.

The following tips can help you establish good working relationships with your suppliers: Set up regular times to communicate with your suppliers. Discuss issues or concerns in an open and honest way. Actively listen to advice and feedback. Provide feedback and report issues early.

Agree on a standard ordering process. Pay your accounts on time. Stay organised and try not to change or rush orders. Review your suppliers. Your current supplier is closing their business, or no longer stocking the items you need. Your current supplier contract is expiring and you want to check out other suppliers before renewing the contract. Make sure you consider all your options before making the switch.

Most disputes can be resolved quickly using a common sense approach. Our tips may help you identify and resolve the issues quickly and easily: Check your facts — if you have a written contract, read it carefully. Your contract may help you understand the problem, or help you identify a dispute resolution clause. Contact your supplier — you may find a resolution by simply talking through the issue with your supplier.

Keep records — records will help you keep track of what has happened. You may need these records if you take the matter further.

These include: the Australian Small Business and Family Enterprise Ombudsman Small Business Commissioners where available in your state state or territory consumer protection or fair trading agencies. Read next.

Always allow your supplier the opportunity to be part of a solution. Are you doing the same thing with your suppliers? If your supplier has done the right thing by you, reward them with your loyalty — just the way you like to be rewarded. Business relationships are a two-way street.

It requires open and honest communication, and the ability to have difficult conversations if required. Ailsa Page. Choose suppliers that align with your values If excellent customer service is important to you then choose suppliers for whom this is also paramount.

Be a great customer Think about what you love about your customers and do the same for your suppliers. Maintain regular communication Keep in touch with your suppliers and try and schedule a time to get together over a coffee or a beer.