Regardless of what your business does, strong supplier relationships are critical for sustainable operations. These relationships are so important that they’re often considered to be a key factor when determining the value of an existing business.
In a global market, suppliers can be based from pretty much anywhere, and, with the right economies of scale, it can sometimes make sense to use suppliers who may be a continent away. However, for most small businesses, local suppliers continue the most cost-effective and sensible option for a majority of their needs.
If you want to keep your business competitive, it will be critical to understand how best to forge and maintain strong connections with key suppliers within your area. Here are 7 tips that should help you build better ties with local providers:
1) Guarantee On-Time Supplier Payments with Your Payroll Management System
It’s difficult to build healthy relationships with suppliers if you can’t pay them on time. Putting your suppliers on your automated payroll systemwill help ensure timely, always-accurate payments while also taking some of the burden off of your supplier relationship and payroll management teams.
Managing payroll for small business ventures can be time-consuming as it is, so you want to use a payroll system Philippines-focused organizations rely on. Maya Disbursements offers simple but powerful small business payroll management capabilities, simplifying bulk payments not only to employees, dependents, and customers but also to suppliers, vendors, and more. If you need on-time salary disbursement, allowance management, loan disbursement, and supplier payments, Maya Disbursements does it all.
2) Consider Joining a Group Purchasing Organization
Small businesses can’t always get the best deals from suppliers simply because their commitments tend to be more modest than those of larger organizations. As such, they can’t easily negotiate bulk discounts for essential production inputs. At least, not by themselves.
Group Purchasing Organizations (GPOs) and similar collective groups provide businesses with collective purchasing power. Joining a local GPO allows you to leverage the strength of a group to negotiate better deals with suppliers. This setup can lead to considerable cost savings, improved terms, and more favorable relationships with your local suppliers.
3) Designate a Supplier Relationship Manager
It’s not uncommon for different individuals within a small business organization to be responsible for different acquisitions. This is usually the result of people having to wear multiple hats during the early phases of the venture. However, once a business grows, this situation can lead to a lot of inefficiencies, misunderstandings, and lost opportunities as suppliers won’t have a single point of contact to deal with.
Assigning a dedicated supplier relationship manager within your organization can help solve this confusion. This individual should be responsible for maintaining positive relationships with suppliers, addressing concerns, and ensuring effective communication with all suppliers. Having a designated point of contact can streamline interactions and prevent misunderstandings involving suppliers and employees.
4) Research Your Suppliers’ Backgrounds
Thoroughly research the backgrounds of potential suppliers before committing to major orders. Understanding their reputation in the industry, financial stability, and ethical practices can give you some idea about how best to negotiate with them. Getting to know your potential supplier better will also help you gauge their ability to provide production inputs or services.
5) Choose Suppliers Based on their Mission, Vision, and Values
Coming off the previous point, aligning your business with suppliers who share similar values can contribute to a more harmonious and sustainable partnership. Consider the mission and vision of your suppliers and see if these align with your own business’s goals. Building relationships with like-minded suppliers can simplify negotiations and lead to fruitful long-term collaborations.
6) Try to Make a Good Impression
Whether it's a formal meeting or a casual interaction, strive to make a positive impression on your suppliers. Clear and transparent communication, professionalism, and reliability go a long way in establishing trust. Building a good rapport from the beginning sets the tone for a mutually beneficial relationship.
7) Remember that Business Relationships are Ultimately Human Connections
While we may consider business relationships to be different from personal ones, these connections are still built between people. Keeping things “strictly business” can be counterproductive in many circumstances, particularly in the context of local business communities. At the very least, try to engage with your suppliers in a way that builds a sense of camaraderie and mutual respect. Make it a point to attend industry events, engage in casual conversations, and show genuine interest in the well-being of your suppliers. Over time, these positive interactions should translate to stronger trust and better business relationships.
Build Meaningful Long-Term Supplier Relationships with Maya Disbursements
Maya Disbursements is the payroll system Philippines-focused businesses trust to help grow their business. Manage it effortlessly over Maya Business Manager for total control over your bulk payments, banking, and cash flow. Sign up for Maya Business today to facilitate the disbursement of loan payouts and salaries to your employees, as well as supplier payments to your vendors and partners.
Signing up for Maya Business also lets you in on the one-of-a-kind Maya 1-2-3 Grow bundle. With Maya 1-2-3 Grow, you’ll get a 1% MDR (merchant discount rate) discount on all QR Ph transactions for 3 months after signing. This means PHP 14,600 in extra savings for every PHP 1 million in QR Ph sales.
This bundle also gives you access to a Maya Business Deposit account for your settlements. With an industry-leading 2.5% per annum interest rate, your business’s funds will grow 20-25x faster compared to other banking savings products. At 2.5% p.a., the funds will earn an additional PHP 25,000 each year for every PHP 1 million deposited. Maya Business Deposit’s zero maintaining balance and free transfers via InstaPay and PESONet also mean your business gets even more cash to fuel its growth.
Lastly, the Maya 1-2-3 Grow bundle puts you in line for a Maya Flexi Loan of up to PHP 2 million in just 3 months, allowing you to place larger orders with suppliers that will grow your business. For better subsequent loan terms, make Maya your go-to processor for all wallet and card transactions.
Sign up for Maya Business today to activate Maya Disbursements, and take your business further with Maya 1-2-3 Grow.
