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What are the best practices for resolving conflicts with your suppliers?

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As a control engineer, you may have to deal with various suppliers who provide you with components, software, or services for your projects. Sometimes, you may encounter conflicts with your suppliers over issues such as quality, delivery, pricing, or specifications. How can you resolve these conflicts effectively and maintain a good relationship with your suppliers? Here are some best practices to follow.

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M.V. Ramesh B.Tech , MBA , FIE , C.Engg

Vice President (Corporate) and Vertical Head (Cogen) in NSL Sugars I Ex : L&T, Athena, Lanco and Turbomachinery I O&M…

1 Understand the root cause

Before you approach your supplier with a complaint or a request, try to understand the root cause of the conflict. Is it a technical problem, a communication gap, a misunderstanding, or a breach of contract? By identifying the source of the conflict, you can prepare a clear and reasonable argument for your position and avoid unnecessary escalation.

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M.V. Ramesh B.Tech , MBA , FIE , C.Engg

Vice President (Corporate) and Vertical Head (Cogen) in NSL Sugars I Ex : L&T, Athena, Lanco and Turbomachinery I O&M and EPC Power Projects and R&M of Rotary equipment
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Before you approach your supplier with a complaint or a request, try to understand the root cause of the conflict. Is it a technical problem, a communication gap, a misunderstanding, or a breach of contract? By identifying the source of the conflict, you can prepare a clear and reasonable argument for your position and avoid unnecessary escalation.

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Akshay Shende

Corporate Finance Student at SKEMA Business School | Venture Capital Intern at Axis Venture Partners | Valuation & Equity Research Enthusiast | Capital Markets Learner
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In any supplier conflict, diving deep to understand the root cause is crucial. It's not just about addressing the symptoms but uncovering the underlying issues for a long-term solution.

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2 Communicate respectfully

Communication is key to resolving any conflict, especially with your suppliers. You should communicate with your supplier respectfully, professionally, and assertively. Respectfully means that you acknowledge their perspective and avoid blaming or insulting them. Professionally means that you use appropriate channels, language, and tone for your communication. Assertively means that you express your needs and expectations clearly and firmly, without being aggressive or passive.

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3 Negotiate fairly

Sometimes, you may have to negotiate with your supplier to reach a mutually acceptable solution. Negotiation is a skill that requires patience, creativity, and compromise. You should negotiate fairly with your supplier, meaning that you respect their interests and rights, as well as your own. You should also avoid ultimatums, threats, or coercion, as they can damage the trust and cooperation between you and your supplier.

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Akshay Shende

Corporate Finance Student at SKEMA Business School | Venture Capital Intern at Axis Venture Partners | Valuation & Equity Research Enthusiast | Capital Markets Learner
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Fair negotiation is key. It's about finding a balance where both parties feel valued and their needs are met. This approach not only resolves conflicts but also strengthens future collaboration.

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4 Document everything

Another important practice for resolving conflicts with your suppliers is to document everything. Documentation can help you track the progress and outcome of the conflict resolution process, as well as provide evidence and accountability in case of disputes or legal actions. You should document every communication, agreement, change, or action that is related to the conflict, and make sure that both parties sign and acknowledge them.

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Akshay Shende

Corporate Finance Student at SKEMA Business School | Venture Capital Intern at Axis Venture Partners | Valuation & Equity Research Enthusiast | Capital Markets Learner
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Keeping detailed records of all communications and agreements helps clarify misunderstandings and provides a clear reference point for both parties. It's about being meticulous and transparent.

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5 Seek external help

If you cannot resolve the conflict with your supplier by yourself, you may need to seek external help. External help can come from various sources, such as your manager, your legal advisor, your mediator, or your arbitrator. Depending on the nature and severity of the conflict, you should choose the most appropriate and effective source of external help. You should also inform your supplier about your intention to seek external help and try to maintain a cooperative attitude.

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6 Learn from the experience

Finally, you should learn from the experience of resolving conflicts with your suppliers. You should evaluate the process and the outcome of the conflict resolution, and identify what worked well and what did not. You should also reflect on how you can improve your skills, strategies, and policies for dealing with conflicts in the future. By learning from the experience, you can prevent or minimize similar conflicts from happening again and enhance your relationship with your suppliers.

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Akshay Shende

Corporate Finance Student at SKEMA Business School | Venture Capital Intern at Axis Venture Partners | Valuation & Equity Research Enthusiast | Capital Markets Learner
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Every conflict with a supplier is a learning opportunity. Reflecting on what went wrong and what worked helps refine strategies and processes, reducing the chances of similar conflicts in the future.

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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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What are the best practices for resolving conflicts with your suppliers?

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1 Understand the root cause

2 Communicate respectfully

3 Negotiate fairly

4 Document everything

5 Seek external help

6 Learn from the experience

7 Here’s what else to consider

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