Thu. Nov 14th, 2019

The Importance of Managing Suppliers Effectively in Business

3 min read

Building key relationships with suppliers is as important to a growing business as the steps taken to achieve great connections with brand new customers. Your supply line is what makes you tick as a company, and it doesn’t matter how many items of a single product you sell to your customers, if you do not have a solid pipeline of goods flowing into your company from your suppliers you won’t have anything to deliver and your customers will desert you in the end.

A breakdown in communication with your suppliers can lead to difficulties and real problems that are extremely difficult to overcome for any business. We’ve seen it in recent times in the UK how important the supply chain is, with the example of KFC changing the delivery partner for its chicken to the hundreds of outlets around the country. Growing pains in the first few days and a clear lack of understanding of the logistical challenges meant that many stores were unable to serve any chicken at all. It was a devastating blow to the company (and to the brand new delivery partner), but clearly demonstrated how important it is to have good relationships with your supplier and a clear understanding of how delivery of supplies works in conjunction with your service and to your customers.

A bad relationship with your suppliers could lead to a loss of customers. Supplier management is therefore a key component of any successful business and by hiring a contact centre team who’s sole purpose is to manage suppliers could be the best decision you make as a company owner today. You must ensure that your supplier chain is fully optimised, accountable, and happy at all times. A happy supplier gives you a greater chance to keep your customers happy.

To minimise the financial risks to your company of a poor supplier relationship it is best to have a clear audit process that a professional company can understand and analyse. Having all supplier information in a single place, with data and information flow collected, collated, and analysed by a professional team ensures that your company can move on to a higher professional level and deliver even greater consistent results than ever before.

With analysis of data and information on the supply chain you can work on ways in which the entire process can be improved. This stands for both the supplier and your company and how it delivers to the customer. A supplier management service helps to achieve this goal with a much greater level of detail and accountability than if you managed suppliers ad hoc and in house. By tracking and measuring the performance of your suppliers and your in-house team who take in supplies, you can begin to formulate a clear plan of action for steady improvement that leads through to greater customer service levels and future profits.

Choose to work with a company that understand how to work with professional suppliers and manage the supply chain to ensure the smooth running of your customers’ experience.