10 Tips for Strengthening Supplier Relationships

1. Get to know your supplier’s business. Establish a foundation of trust off the bat by immersing yourself in your supplier’s business. As part of this, visit their operations—headquarters, terminals, warehouse locations—to gain a better understanding of their work at all levels of the business.

2. Consider suppliers as a business extension. Give suppliers visibility and transparency into your business performance and goals. Ultimately, your suppliers are only as good as the access and information you give them to your business so they can successfully do their job.

3. Share the big picture. Be willing to share the full picture of your business strategy; not just the specific piece of the puzzle that directly pertains to the supplier. The supply chain is intricately linked together and the more context you can share with your suppliers, the more adaptable and flexible you’ll be together when challenges arise.

4. Establish and reassess agreements. Agree on terms for your partnership early on. Regularly revisit terms to ensure they still reflect your needs and your supplier’s capabilities. When it comes time to renew terms, be proactive. Don’t automatically renew; make sure all terms reflect the current needs of both groups given today’s dynamic, ever-changing supply chain landscape.

5. Determine expectations. Mutual success is at the root of any supplier relationship. Be transparent with your expectations, but allow space for your supplier to share feedback to come to a mutually agreed-upon understanding that allows both parties to be successful.

6. Promote suppliers to your peers. When given the opportunity, vouch for your suppliers and promote them to your peers, whether that’s at conferences or in organic conversations. Exchange leads and vendor contacts with your suppliers for the ability to tap into cross-selling opportunities that are mutually advantageous.

7. Integrate communications. Prioritize keeping your suppliers up to date on business activities by enabling regular two-way communication at every level of the relationship, from the top down. This will enable open communication when business is good, but also when it’s inevitably time to navigate a disruption or challenge together.

8. Facilitate regular business reviews. Keep dialogue open by designating a specific cadence to revisit goals, review current performance, highlight recent wins and discuss any challenges. Align on what cadence works best—monthly, quarterly and/or annually—and consider reviews that include top management for full visibility and alignment from both parties.

9. Allow each other to fail and correct. Particularly in the beginning, give each other grace by allowing both sides to fail and correct. Great relationships don’t form overnight, and it takes time to understand the complexities of each other’s businesses. Be accepting of feedback and understand that challenges and mistakes will happen. It’s how you navigate those together that matters most.

10. Prioritize and value human interaction. As technology continues to integrate into the supply chain, human interaction is only becoming more valuable. Avoid solely transactional experiences and certainly don’t rely on them. Ensure you have regular video calls and in-person meetings with your suppliers. By prioritizing human interaction, you open the door to more organic conversations and naturally build a stronger relationship.

SOURCE: Doug Frank, SVP of Transportation Management & Procurement, GEODIS