What strategies help you establish and maintain influence with suppliers?

In my experience it helps to have in depth conversations with the supplier teams (supplier sales, supply chain, IT, finance etc) to have an enhanced understanding of the processes, company goals, capabilities, culture and establish good connections throughout their organization. It is amazing how beneficial for all the parties such cross functional conversations can be. It is important to align on the key goals and expectations to grow the partnership together. Collaboration and trust are basis of successful journey.

For strategic purposes we make a "red sheet" In this sheet all important info is in like; financial updates, general news items ( if any), comments from stock exchange, D+B reports etc. Besides this also the cultural background is in the redsheet. To get life data we organise SRM meetings with senior management or even board members. Via a sustainability partner Ecovadis we get info about sustainable procurement, environment, labor and corruption. The info is updated minimum every 6 month.

In My Experience, i choose a supplier by undergoing a fair cut deep research considering all parameters such as Financial stabilities, their strengths, their weakness, the market value/feedback which they have on customers etc. to chose a good supplier. This is like placing an order from e-commerce stores where we instantly check on various factors to make us ensure that our order we place does not affect our cost & value.

Key aspects of "Know Your Suppliers" include conducting thorough research on potential suppliers, evaluating their financial stability and reputation, and assessing compliance with legal and industry standards. The goal is to make informed decisions that mitigate risks associated with suppliers and contribute to a transparent and ethical supply chain.

The main factor it’s understand their capabilities, Research and development. Plan future business and or increase current demand. Look for synergies that can allow both companies be more competitive and profitable with new edge technology and or products.

It is the best practice to agree on communication and escalation protocols early in the relationship on both sides and keep it up to date. Effective and timely communication with the right stakeholders is very important to develop successful relationship.

One of the Best practice to foster collaboration with suppliers is the effective communication. Through my experience, 80% of the disruptions are reduced when rapport communication with our suppliers was done. Hence to conclusion, communicating the best is the best method which we all need to do.

Comunica??o clara, contratos bem redigidos com deveres e direitos claramente explícitos. Contato constante e boa utiliza??o das ferramentas comunica??o digitais.

Create a b2b annual revisions where you can communicate the current market status expectations and support needed along with KOP AND KPI. Follow thorough every quarter to review plans, expectations and resolve bottlenecks

When a supplier feels that’s you’re putting fair suggestions on the table, they already feel you’re treating them with respect, because in the opposite case you won’t be treated with respect, this will be more critical when you’re sourcing during a supplier’s market period.

We are working after something. Likewise for suppliers, they have their own objectives and goals to achieve. It is paramount that we understand their needs and goals even before we start our negotiation - this allows us to plan our strategy to align our goals with theirs, and to come up with a win-win proposal. We have to let suppliers or other parties see that we have their interests at heart, to show that we are committed in the business without compromising anyone. The work gets done the quickest only when all interests are aligned.

Certainly, fair and collaborative negotiation involves open communication, active listening, and a willingness to find mutually beneficial solutions. Let's focus on common goals and explore compromises that satisfy both parties

Pricing pricing pricing Ensure you keep your prices clear, concise, transparent and FAIR. Building a long term relationship is very important with your suppliers, do not try to rip them off and concentrate on fair pricing which works for both of you. This will ensure that later you will have a good relationship and they may even help you on pricing when required.

I agree with Youssef that the demands have to fair. Market situations should be in the proposal plus explanations. Also the info from the "red sheet" is used to adopt difference in culture not to be too blund. It sounds stupid and straight forward but if you give commitments you have to honor them even when (market) situations make it hard for you.

Incentives is not my main instrument. Of course the "supplier of the year award" is always good for the competition. Recognition is given in the vendor rating. Offering help in lean initiatives is always appreciated. Also free education is loved very much.

One of the most frequently used solution would be regular and transparent communication is crucial. Providing feedback, discussing challenges, sharing future plans, and aligning expectations can strengthen the relationship.

what is not included here but I consider as critical to maintain your influence: keep your promises and pay on time! Buying-selling relationship is both ways. I have seen many cases where the commitments from the buyer failed then with all the nice strategies the relationship fail.

Highlighting your track record and previous deals within the same industry will give you a boost when entering the first contact phases with a supplier. Suppliers will always take you more seriously when they know you’re not new to the field. Another important way of giving strength signals is your readiness to add extra protective layers to the deal, such as legal protective contracts, scheduling inspections at different stages of the production process and emphasizing how the respect of the agreement and delivery will result in more orders and an extended partnership period.

my own experiences cultivating Strategic Supplier Partnerships provide consistent demand and volume, early and clear communication of needs, working together to identify and address challenges proactively, and lastly maintaining a consistent track record of prompt payment and negotiating fair pricing are a few proven strategies.

One way I always found to maintain influence is to promote healthy competition across suppliers panel. One way to do it by transparently sharing your view across the supplier panel (keeping in mind they are competitors be conservative in sharing confidential information).