Reliable suppliers are the foundation of your business. You should treat them as you would your customers. If you build a strong relationship with them, they will be more willing to arrange express goods delivery, prolong invoice payment terms or prioritise your chain for new products or limited editions. That is worth the effort!
To foster above-standard relationships with your suppliers, you should start with the basics. Pay your accounts on time, inform them of key changes in your business, and meet regularly to make your suppliers feel as they are part of your business.
Once you have the basics, work on relationships further. We can recommend these five methods.
1. Optimise your orders.
With Business Intelligence (BI) predictions and tools, you can estimate with great precision how much and which goods you will need for the next period. Optimising orders with suppliers will reduce goods returns.
In addition, BI will allow you to order the goods well in advance, so you do not expose your suppliers to pressure of urgent orders with short delivery times.
2. Allow suppliers to have their goods under control.
Let the suppliers participate in the goods display in your stores. Thus, they will be confident that you display their goods in an appropriate way and sell with the right sales proposition.
If you offer exclusive display space to your vendors, they will pay you for promoting their products.
3. Work together on marketing.
Your vendors probably know what marketing channels or what ad messages help sell their product the best. Therefore, work on promotion together. You have a common goal – sell as much as possible. If you share know-how and experience with each other, you will create an effective marketing mix that will bring results. Look for win – win – win scenarios. Enable the supplier to have an exclusive cooperation with you based on your insight about your customer. Such cooperation will be very much appreciated.
4. Do not just push purchase prices down.
A request, that suppliers hate – reduce prices. It’s better to increase your earnings by targeted promotions or special offers for loyal customers. Collect your customers’ data and then use it for your benefit. Discount the goods only to those customers for whom it pays off and by just as much as they need to change their behaviour.
5. Share information on the sell out of their products and the behaviour of their customers with suppliers.
As a retailer, you have data insights that suppliers can get only from you. How well their products perform compared to competitors, which customers buy them repeatedly, to which competitor brands customers switch most often or which brands customers buy together in one purchase.
These data insights are so valuable to your suppliers that they will love to pay for them. The problem is that most retailers can not gain such insights from their data and do not have a platform to offer insights to their suppliers. That is why we are here – we can help you find these insights in your data and offer them to your suppliers