How to best treat your Suppliers

How you treat your Supplier says a lot about you. It says a lot about your Business, whether you are the Owner, Director or an Employee. It says a lot about your Professional Integrity too. That last point is one I want you to really think on.

Whilst Suppliers, Businesses and Governments all over the world struggle to come to terms with what is happening and how to navigate it, you could be a beacon of light in a very gloomy world.

So when you engage with your Suppliers, let’s not be draconian. Let’s not let those old Procurement practices of bashing them around the face with a fist until the price meets your expectations. That isn’t how Business should be done. Ever. It’s that simple. You don’t tear down others simply to ensure you survive.

Try doing the following:

• set the standard for your engagement. Agree to some principles that both parties sign — a behaviour charter for example. Ensure that everyone is going to honest and transparent. If they stitch you up by loading a ton of profit and claim they have a price issue such as increased supply costs, it will bite them. Maybe not now, but it will. Do your diligence, scrutinise costs but be open more than ever.
• understand price points, risk profiles and issues of the Supplier. Try to help them where possible and don’t push them too far…