To Avoid Procurement Splintering

A procurement manager I know recently told me a story about a supply crisis where a key supplier unexpectedly shuttered their doors.

The manager's proactive efforts to build relationships with other suppliers kept the company going and saved the company from disaster. 

This incident highlighted one of the most important aspects of procurement: building and maintaining good supplier relationships. This is not just a good practice, it is essential risk management tactic. 

Here are some simple strategies to improve supplier relationships

Regular Communication: Keep open lines of dialogue to address issues early and share success stories.

Joint Innovation: Collaborate on new projects or improvements, which can lead to better outcomes for both parties.

Performance Feedback: Provide constructive feedback regularly, allowing suppliers to improve and adapt.

Recognition: Acknowledge your suppliers’ achievements; this can motivate them to maintain high performance.

Long-Term Commitments: Show loyalty to reliable suppliers with long-term contracts and growth opportunities.

Payments: Pay your supplier dues according to commitment. They'll save you even if you only infrequently purchase from a couple of them. Most of the time this works like a charm. 

These tactics not only prevent supply chain disruptions but also turn your suppliers into committed partners, invested in your success.

Strengthen your procurement network and ensure your organization thrives even in challenging times.