4 Reasons Why You Need to Listen to Your Suppliers’ Advice

Of course you already know that your supplier relationships are key. They can make or break you as a small business owner, because they provide the products and services that allow you to shine.

But how do relationships with your suppliers really tick? Do you manage your suppliers, or do your suppliers manage you?

Regardless of industry or company size, to nurture a great supplier relationship, it’s important to get to the heart of what your suppliers want. One of the key factors in any business relationship is communication. This nebulous concept is actually closely tied to your ROI.

If you can share openly with your suppliers, ask questions, and listen to their advice, you are creating an atmosphere of mutual respect that can pay huge dividends down the road. Here’s why you should listen to what your suppliers have to say.

1. They are Expert in the Services or Products Being Provided
It’s surprising how many entrepreneurs (without researching the industry) will insult a supplier by low-balling an offer, or sour a relationship with unreasonable demands. For example, say you are at a meeting in Tennessee, trying to arrange for a same day courier to Mississauga and blowing up on the dispatcher because it’s going to take 24 hours.

Short of hiring the Concorde, the industry simply cannot accommodate the request. Trust your supplier to give you accurate information – after all, they want your business.

2. They Have Experience with Other Customers in the Industry (often your competitors)
True partnership with your suppliers can give you a competitive edge, because they have inside knowledge of industry trends as well as the competition’s pricing, quality and technology. You might even wind up with an exclusive agreement with your supplier, which, although risky, might result in the kind of growth seen when exclusive rights to bottle Coke were granted in 1899.

3. They are Valuable Observers of Your Business Approach and Internal Processes
They can point out mistakes you won’t be able to see. A truly successful relationship with your suppliers thrives on mutual satisfaction. That means your suppliers have got to know as much about the inner workings of your business as possible. Being on the same page, your supplier will be able to suggest where to trim costs, improve productivity, and even develop new products or services. Fail to listen to their advice, and you could actually fall behind your competitors.

4. It Helps You Build Rapport

Here are some ways to build rapport with your suppliers:

• Pay your bills on time
• Ask for open access to their process so you can better understand their challenges and suggest improvement
• Ask your suppliers what they really want
• Provide reasonable lead time
• If a supplier is otherwise wonderful yet stumbles occasionally, address the shortcomings, then invest the time and resources to develop them

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