3 Ways to Build Stronger Supplier Relationships for Supply Chain Resilience
In today's complex business landscape, building strong supplier relationships is crucial for supply chain resilience. This article explores expert-backed strategies to enhance these vital connections and fortify your supply chain. From treating suppliers as strategic partners to investing in personal relationships, discover practical approaches that can transform your supplier management and boost overall business performance.
- Treat Suppliers as Strategic Partners
- Pay Early and Respect Supplier Time
- Invest in Personal Supplier Relationships
Treat Suppliers as Strategic Partners
At Freight Right, one approach that has consistently delivered results is treating key suppliers as strategic partners rather than just vendors. Instead of focusing solely on rates and transactions, we prioritize transparency and alignment. This means sharing forecasts, being upfront about long-term plans, and engaging suppliers early when we anticipate market shifts.
This approach paid off during the pandemic when global capacity vanished overnight. Because we had invested years in building trust, paying on time, honoring commitments, and supporting carriers in both good and bad markets, we were prioritized for scarce space. That advantage not only allowed us to move our own freight but also to protect our customers' supply chains when competitors faced severe delays.
The benefits were clear:
Continuity - We secured reliable space allocations, avoiding weeks-long disruptions and the costs associated with them.
Collaboration - Carriers shared early intelligence on congestion and regulatory changes, giving us the ability to proactively reroute shipments and keep customers ahead of the curve.
The real lesson is reciprocity. By showing suppliers we're invested in their success, not just extracting value, they step up when challenges arise. In today's volatile supply chain environment, those relationships are every bit as critical as technology or process improvements.
Pay Early and Respect Supplier Time
It is truly valuable to have strong connections with your suppliers, because that reliability is the main power source for keeping your own business running smoothly. My approach to building key relationships is a simple one. The "radical approach" was a simple, human one.
The process I had to completely reimagine was how I looked at pricing. I realized that a good tradesman solves a problem and makes a business run smoother by ensuring his own supply lines are secure. I stopped treating suppliers as competitors and started treating them as essential partners.
The one approach I used to build stronger relationships was Proactive Payment and Professional Loyalty. I don't haggle aggressively, and I always pay invoices early, often digitally the moment the job is quoted, rather than waiting for the 30-day term. This signals that I am a low-risk, high-value client who respects their time and stock.
This relationship advantaged me during supply chain challenges by giving me priority access. When copper wire was scarce, my supplier ensured my critical stock was filled first, which meant I never had to delay a client's job. That reliability is priceless.
My advice for others is to be the most reliable client they have. A job done right is a job you don't have to go back to. Invest in that professional loyalty. That's the most effective way to "gain a relationship advantage" and build a business that will last.
Invest in Personal Supplier Relationships
I've found that investing time in personal relationships with our suppliers, including sharing pipeline forecasts and visiting their facilities in person, creates mutual value beyond transactional exchanges. This approach proved especially beneficial when working with a Portuguese manufacturing partner who prioritized our shipments over larger competitors during a significant supply crunch. Building these relationships requires genuine commitment, but the resulting loyalty and preferential treatment during challenging times have consistently delivered substantial return on that investment.
