While governments and banks seem to drag their combined heels to make a decisions and sort out this economic mess, there are practical steps that you can take now to make a real and immediate, economic difference to your business.
What have your suppliers done to support your business in these challenging, economic times?
We are, after all, in this economic challenge together and your business success (or otherwise) is reflected in your suppliers business. Doesn't it follow, therefore that a supplier worthy of your business should be showing you their pro-active support?
These difficult times will not continue forever, but while we are where we are, the reality is that your suppliers should be far more attentive than at other times of the business cycle. They should be sharing new ideas with you, new products, information and more to the point, demonstrating a close interest in your business and gaining your feedback from which they should adjust their business to help yours!
When did you last get a visit from your key suppliers?
Don't simply take the status quo for granted, challenge your suppliers with a review and give them the opportunity to shine. It's easy, takes very little of your time and your return may be significant.
Start by listing your key suppliers and then drop them an email with a set of questions.
Here are some good questions for you to consider asking your existing suppliers,
I know you work with similar companies to ours, but what do you think is unique about our company & why?
What trends are you seeing in the market place & how are you reacting to this?
Who is your main competitor & why?
Is there a way to reduce the price by providing a variation on the product(s) we buy from you?
Please confirm our current terms and conditions, including but not limited to, our current credit limit, payment terms, volume discount, product warranty and alternative options.
Please recommend any new technologies/materials/products you have that are within our budget which you consider might help us to improve our product(s).
The supplier review is not designed to ‘beat up' your suppliers, but simply to ensure that you are getting the best from them.
Suppliers are clearly a key business constituent and ideally both parties should subscribe to a ‘partnership approach'. Your efforts should be focused on managing key suppliers to form strong relationships to the benefit both businesses.
You need your suppliers to make every effort to provide you with the best products and best service possible and you are more likely to create this atmosphere by creating a two-way communication and demonstrating how important they are to your business.