I recently saw a post in a social media group from a poor lady who was tearing her hair out after being let down by her suppliers. Consequently her product launch could be delayed, and promises she had made to prospective clients, broken. It’s a situation that I have been in, and its not pleasant. When you are the new kid on the block, and your product is largely untested by your market, any situation that negatively affects your credibility is a potential disaster.

Your suppliers are crucial to the success of your product. They will influence everything from the quality of your finished product,  the timeliness it reaches your customers, to the presentation and packaging.

So it’s worth taking the time to pick the best guys to work with, and then nurturing a great relationship.

• Shop Around

Take some time to pick the suppliers that are the best fit for you. This doesn’t necessarily mean the cheapest, or fastest or nearest. Visit prospective suppliers, meet the people that you will be dealing with. Inspect their premises. And if possible, ask for references from their existing customers, and check them out. Ask them about their quality control processes and the lead time to complete an order. Remember that suppliers are going to be an essential part of your team and you will need to know that they care about the successful production of your product and how they impact that process.

NOTE : I once was negotiating with a potential supplier, and of course I wanted great quality, the best price and the quickest turnaround time. The supplier said to me – you can have two out of three, it can be fast and cheap, but I don’t guarantee quality, it can be good quality at a great price – but you will have to wait, or it can be great quality at the fastest turnaround – but you will have to pay for it.  I chose the last option. Remember that you may not get everything you want, so go for the supplier that provides the best option for you.

 

• Have a Trial Run

Once you have picked a supplier, have a trial run. Place a small order and see how it works out. Was the quality there? Did it arrive on time? Was the paperwork professional? Did you feel comfortable dealing with the supplier?

 

• Sign a Contract

Yes, contracts sound scary. But they outline the terms and conditions of the relationship between supplier and customer, so that each party is clear about it’s obligations. It should include a clear description of the work the supplier is required to do, the time it should take and the price the customer will pay. And MOST IMPORTANTLY – there should be a NON DISCLOSURE CLAUSE. It’s possible that your supplier will also be filling orders for a competitor – so it’s essential that you can rely on the supplier not to disclose confidential details of your product or your company to a competitor that could be damaging. In addition, the contract should include a NON-COMPETE clause, to prevent the chance of the supplier deciding to go ahead and replicate your product. Most professional companies will be used to signing these types of contract, and view it as normal practice.

 

• Pay On Time

The quickest way to damage your relationship with your suppliers is to not pay them when you are supposed to. The payment terms should be written in the contract, and you should adhere to them. Not only is it contractual, it’s good business, and you will start to build a good reputation in the industry. Which is GOLD. A reputation of trustworthiness, reliability, and integrity is not only a good thing to strive for per se, but will also help you in unexpected circumstances. A good friend of ours, working within the seafood industry had one of those golden reputations. When he faced financial difficulties and possible bankruptcy after an overseas buyer let him down, his suppliers (local fishermen) offered to take lower prices and extended payment terms to help him get through his financial troubles. It’s an extreme example, but an illustration of how important it is to build a rock solid reputation in your field.

 

• Be Nice

Good manners don’t cost a thing. Yes, you may be the customer, and yes, suppliers get paid for what they do, but it doesn’t hurt to remember to say “please” and “thank you” and be pleasant to all the staff, including the person who answers the phone. Remember that you will be in exactly the same position when you are dealing with your customers, and isn’t it much nicer to deal with people who are appreciative and value what you do? So be a great client, and treat people the way you would like to be treated.