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What are the most effective ways to improve supplier relationships on a tight budget?

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If you are involved in import/export operations, you know how important it is to maintain good relationships with your suppliers. Suppliers can affect your product quality, delivery time, cost, and reputation. However, building and strengthening supplier relationships can be challenging, especially if you have a tight budget. How can you improve your supplier relationships without breaking the bank? Here are some effective ways to do so.

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Shannon Lam

Sales & Sourcing Manager
Dr.mahboobeh Seif

Bussines developer_Business consultant_PHD_sales manager_business coach

1 Communicate clearly and frequently

One of the key factors in any relationship is communication. You need to communicate your expectations, feedback, issues, and appreciation to your suppliers regularly and clearly. Use the preferred channels and languages of your suppliers, and avoid jargon and ambiguity. Also, make sure you listen to your suppliers' concerns, suggestions, and questions, and respond promptly and respectfully. Communication can help you avoid misunderstandings, resolve problems, and build trust.

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Dr.mahboobeh Seif

Bussines developer_Business consultant_PHD_sales manager_business coach
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Since I work in import and export business ,finding a reliable supplier is one of the issue in the case that many business men are looking for suppliers who can trade in the rock bottom prices ,there for be honest , talk honestly to have long cooperation is vital .

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Nur Mohammad

Customer Services and Logistics II Import Operation II
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In my work I have make several suppliers to accept the tight budget with only the fair and frankly communication though that my first deal. To be very fair and share the full market situation, competition ration and possibility of future business growth helps to win.

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2 Negotiate fairly and transparently

Another way to improve your supplier relationships is to negotiate fairly and transparently. Don't try to squeeze the lowest price or the shortest lead time from your suppliers at the expense of their profitability or quality. Instead, aim for a win-win situation where both parties benefit from the deal. Be honest and realistic about your needs, budget, and market conditions, and share relevant information with your suppliers. Negotiation can help you achieve mutual satisfaction and loyalty.

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Shannon Lam

Sales & Sourcing Manager
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-Partnership, not buyer & supplier. -Transparency, be equally. -Continuous improvement. -Learning and grow up together. -Share the profits and loss. -Sustainable with action

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3 Collaborate and innovate

A third way to improve your supplier relationships is to collaborate and innovate. Don't treat your suppliers as mere vendors, but as strategic partners who can help you improve your products, processes, and performance. Involve your suppliers in your planning, design, and development stages, and seek their input and expertise. Also, encourage your suppliers to share their ideas, innovations, and best practices with you, and reward them for their contributions. Collaboration can help you create value and competitive advantage.

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4 Recognize and reward

A fourth way to improve your supplier relationships is to recognize and reward. Don't take your suppliers for granted, but show them that you appreciate their work, quality, and service. Acknowledge their achievements, milestones, and improvements, and give them positive feedback and testimonials. Also, reward your suppliers with incentives, bonuses, referrals, or other benefits that suit their needs and preferences. Recognition and reward can help you motivate and retain your suppliers.

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5 Learn and improve

A fifth way to improve your supplier relationships is to learn and improve. Don't assume that you know everything about your suppliers, but seek to understand their culture, values, goals, and challenges. Conduct regular surveys, audits, and reviews to measure and monitor your supplier performance, satisfaction, and risk. Also, use the data and feedback to identify areas of improvement, and implement corrective and preventive actions. Learning and improving can help you enhance your supplier quality and efficiency.

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6 Respect and trust

A sixth way to improve your supplier relationships is to respect and trust. Don't treat your suppliers as adversaries, but as allies who share your vision and mission. Respect their opinions, decisions, and rights, and avoid blaming, criticizing, or micromanaging them. Also, trust their capabilities, reliability, and integrity, and give them autonomy and responsibility. Respect and trust can help you foster a long-term and healthy relationship with your suppliers.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Arif Khan SCM?

Supply Chain Management | Commercial | Import & Customs Bond Management
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Formulate a supplier base who share almost a common ideology or principles in business aspects so that it becomes easy to communicate and build a relationship of trust that will ensure a cost-effective, less time consuming, and smooth way of procurement operations in the long run.

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Li Kiang Chia

Seeker
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Suppliers or service providers are similar to users - they are business organisations and target to make good profit if not less. If they can cover their target numbers by all means however some need fine tuning to match each buyers. Once you understand this concept it’s easier to talk with each parties irregardless which hats you’re wearing.

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What are the most effective ways to improve supplier relationships on a tight budget?

1

2

3

4

5

6

7

1 Communicate clearly and frequently

2 Negotiate fairly and transparently

3 Collaborate and innovate

4 Recognize and reward

5 Learn and improve

6 Respect and trust

7 Here’s what else to consider

Import/Export Operations

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What are the most effective ways to improve supplier relationships on a tight budget?

1

2

3

4

5

6

7

1 Communicate clearly and frequently

2 Negotiate fairly and transparently

3 Collaborate and innovate

4 Recognize and reward

5 Learn and improve

6 Respect and trust

7 Here’s what else to consider

Import/Export Operations

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