Effective communication is the cornerstone of building strong and mutually beneficial relationships with suppliers.
By cultivating open and transparent communication channels, you can enhance collaboration, mitigate risks and drive value across the supply chain.
Below are some best practices for improving communication with suppliers so that we can build stronger relationships:
📍Clarify Expectations and Requirements: Lay a great foundation for success from the get-go by establishing clear expectations and requirements. This is easily achieved when initiating new supplier relationships through scheduled kick-off meetings at the beginning of projects or contracts. At such meetings, both buyers and vendors are able to clarify respective expectations, requirements and deliverables to ensure alignment from the outset. It is the perfect space to ask questions, agree performance indicators, contract representatives, communication protocols, etc
📍Provide Timely Updates and Feedback: When we regularly provide timely updates and feedback to suppliers, we demonstrate respect and professionalism, build trust and strengthen the relationship. Providing timely updates on order status, delivery schedules and any changes in requirements will prevent misunderstandings and disputes, leading to smoother transactions. Also remember that offering constructive feedback will drive continuous improvement, enhance collaboration and contribute to improved supplier performance over time.
📍Address Challenges and Resolve Issues: Managing unforeseen circumstances which have the potential to significantly disrupt the supply chain requires a lot of collaboration and proactivity. When facing challenges or disruptions, proactively communicate with suppliers to assess the impact and explore alternative solutions. Collaborate on contingency plans to minimize disruptions and maintain trust. The key is to engage key stakeholders early on and communicate transparently. Approaching challenges in this manner will ensure minor issues are nipped in the bud before they escalate into bigger problems.
📍Establish Performance Metrics: Nothing spoils communication with suppliers more than arguments over what the deliverables were meant to be. Define clear performance metrics and key performance indicators (KPIs) to measure supplier performance objectively. Schedule regular performance review sessions to review these metrics with suppliers, track progress, identify areas for improvement and celebrate successes. Performance metrics provide a framework for continuous improvement and ensure alignment with your business goals. As they say, ‘it won’t get done if it’s not measured.
Remember that effective communication is essential for building strong and enduring supplier relationships in procurement.
Need procurement specific training? Reach out to support@efemini.com and we'll get you sorted.
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