Teamwork: The Importance of Building Strong & Positive Relationships with Your Suppliers

How well do you know your supplier? What are the advantages of having a good working relationship between your company and your supplier? Do you interact regularly and communicate effectively? Naturally, having a solid partnership with your supplier will affect your company’s aspects such as product quality, competitiveness, company finances, and technological advances – but how? Additionally what many companies don’t realize is the value of maintaining strong, positive relationships with their suppliers, may strongly decrease the chance for complications in the long run. So, what are the benefits?

March 31, 2021

Consider Your Relationship A Two-Way Street

Businesses tend to underestimate the importance of positive, working relationships with suppliers. If you’re working internationally, the majority of your communication and interaction is virtual. For instance, our global pandemic and the threat of COVID-19 have affected many partnerships due to the inability to travel internationally and face interactions with suppliers. Think about it. What might have been eight to ten factory visits per year is now zero. That’s tough on both of you. Personal interactions are significant in maintaining a valuable partnership. While COVID-19 has certainly limited this type of collaboration, it’s also provided opportunities for businesses to truly reflect on their daily operations and take advantage of innovating these practices.

Your suppliers are more than just a vendor; they’re your partner. Rather than asking, “What can our supplier do for our company in order to be successful?” focus on “How can we work together and support each other to ensure we’re both successful?” To illustrate this, let’s look at the advantages of personalizing the relationship and being a valued customer:

Product Quality

Think about it. Higher quality products have the potential to increase customer retention, loyalty, and satisfaction. Creating high-quality products provides opportunities to build positive reputations and strengthens your competitiveness. Working with your supplier to ensure good quality products are being produced is critical, as essentially this is where companies can increase cash flow – which is suitable for both you and your supplier. High-quality products lessen the risks for returns or product recalls. Having quality products enhances opportunities to increase production, ultimately growing your profits. The bottom line? The relationship that you have with your supplier will affect the quality of your product. Furthermore, stay active with your suppliers through frequent check-ups and continuous communication.

Since 2002, HBI’s team has grown relationships with our suppliers, conducting in-person factory audits and product inspections. Despite our global pandemic, HB International’s team of experts has continued to meet safely with our vendors face-to-face to ensure quality products and good practices continue to be at the forefront of our business.

Maintaining A Competitive Edge

Is your supplier continuing to bring innovation to your products? As industries evolve and product demands change, is your product staying competitive? Find yourself a supplier that continues to educate itself on product innovation, technological advancements, and ways to remain competitive. Consequently, your supplier should be excited to share knowledge of cutting-edge technology and ways in which a simple tweak in a product’s development can ensure it stays competitive. Understanding a company’s needs and growing industry trends stems from thorough communication and the ability for you and your supplier to predict what may benefit each other’s needs.

HB International knows what it takes to keep our customers competitive. Our purpose is to bridge the gap in communication to ensure our vendors are equipped with cutthroat technology while understanding what will make our customers’ products most competitive. What sets us apart is having a team that can communicate both parties’ needs and demands to ensure success.

Finances

Whether it’s payment terms or product costs, having a reliable and robust relationship can positively affect your cash position. As the saying goes, “Treat others the way you want to be treated.” If you expect your supplier to provide high-quality products at a competitive but low cost, it is your responsibility to ensure their payment terms are met and payments are received on time.

There is a sense of loyalty and consideration when handling the finances in a partnership. Truthfully, it’s all about making the most profit at the end of the day and creating the least amount of overhead. Late payments can create a stressful situation for a vendor. Sometimes vendors may cease production or shipping until the agreed-upon payment is received, causing production setbacks, shipping delays or other manufacturing complications. Delays create dissatisfied customers, which can ultimately complicate and even dismantle relationships. The best way to handle this type of situation is, to be honest with your supplier. Ignoring the issue and creating poor habits will only cause your partnership to suffer, and re-gaining trust takes time.

So how can you avoid financial complexities? Communicate your needs upfront. Establish firm payment terms that hold both parties responsible for upholding their duties. Be proactive and work together to organize various plans covering any financial situation that may arise in your time working together. While you may never have to deal with a financial complication during your tenure, it’s always better to be prepared.

What Can HBI Do For You?

We’re proud to say we didn’t just start this mission. Since 2002, it has always been our intent to provide our customers with reliable, competitive, high-quality suppliers who produce superior quality products. As we continue to build relationships between suppliers and customers, we’re here to ensure both receive the service and care you deserve. We value the relationships we have and look forward to the start of new partnerships.

As a global manufacturing agency, there are many ways HB International works to support our customers. From product development to quality assurance and supplier auditing, our team of experts is equipped to meet each of our customer’s unique needs.

Let us know how we can help get you started on your next project!