Case Study Document

How can a business develop and maintain relationships with suppliers?

How can a business develop and maintain relationships with suppliers? – Learn how to develop efficient supplier matching and win back those former customers. A business is the sum of everything it does. It’s the decisions the leaders of a business make that focus it to a strong position for positive outcomes in its areas of interest. Suppliers are among those reference and the way a business deals with suppliers means everything it does. Supplier relations need to be a high priority for business leaders. How do we develop effective supplier relations? By mapping effective supplier selection and management, we also strengthen our relationships with our suppliers. Trying to win back customers The traditional way of drawing a line between two customer groups is between those you do good business with and those you don’t. How could a different strategy be drawn? A business could separate suppliers into three categories: These different types of supplier can be loosely grouped where each have a place in a business’s relationship with them. Every business should work actively with each of these groups, and at the right times. The problems come from the confusion between these different groups of suppliers and the process of doing business with them. Customer Relationship Types An organization’s strategy can be tuned to the customer relationship type for the given supply chain. Our Supplier Mapping below summarises these different types of supplier, and how you could develop your approaches, from business supplier selection to managing in your relationships. Here’s an example of Supply Chain types, and how you could develop your strategy around those 3 different customer types based on your business offering.

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As an example, have a look at an example below. 1. A business-to-consumer (B2C) and business-to-business (B2B) offer. Supplier Relationship Status What is the sourcing status? How strong check over here the relationship? Where/When should this be in the process? Manage your supplier relationships at: Compile Negotiate Source Contract Payment Renew Procure Retain When, for each of these, do you know what needs to be done? What tasks and activities are involved for the supplier? What would the supplier need to provide? What other controls need to be in place? What checks will you make? How will you manage? Which party will do what? Review and score supplier relationship at: Compile Negotiate Source Contract Payment Renew Procure Retain Do you see the importance of these groupings? Do you know what supplier relationship status you should be in to use your different approaches? Customers come at How can a business develop and maintain relationships with suppliers? Gillian Carter, managing director of South largest distributor is answering this question to the packed session, ‘How to Leverage the Business Agility Advantage at the Distributor’, to be held on Friday 10th at the Country Marijke Expo and Placard World Show North, Nelspruit. Until last year, Gillian Carter was the marketing director at Global Industrial Supply, the country’s fourth biggest distributor. Once she left, the CEO, Jeremy Neller, urged her to take the challenges of her new role of managing director at FCS World Wide. She would be joining the company that would become the South African distributor of the products that she sold. That was her first major international appointment and has been very successful. Prior to employment with GIS, Gillian set up the company, Global Industrial Supply (GIS) which trades for the South African market under a three year with one of the top three suppliers in the country. She has been a distributor for more than a quarter of a century but noted that this is the first time she has set out to manage such a major “It is the biggest thing that we are doing but it is really only the beginning of something substantial we are after. It is a very big push as far as we are concerned. We have some very new and exciting ideas and we are developing new partnerships throughout the value chain and we are looking to give special treatment to new market entrants.

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We want to change the way we do business and the way we communicate with our customers as well as our distributors which is something that is important to us since we have over 1000 vendors as a market maker. “(SAPO July 2014 p 8) Vendors rely on their distributors to sell their products and vice–versa. What this means is  you simply cannot assume you are the How can a business develop and maintain relationships with suppliers? Companies can develop and maintain relationships with suppliers in a number of ways: 1.Direct business relationships The simplest and oldest way of developing and maintaining business relationships is by using the company’s own resources to find and nurture new business opportunities and to supply those opportunities with goods and services. This can be supplemented with management or professional agencies if cost effectiveness and efficiency is needed. 2. Professional business consultant service Professional business consultants can provide advice to a business on how to identify, grow or nurture new business opportunities, either within their own markets or others. Those that are considered ‘direct business’ are more likely to be in the ‘finding, planning and selection’ stage of new business, whereas ‘demand management’ consultants are more concerned about strategic change programs for established businesses. 3. Advertising services A third strategy may be the use of externally funded advertising agencies or ad agencies that are operated from within a well-established company. In recent years, the use of her latest blog agencies has become common across a wide range of industries, including food and beverage, confectionery, textile and paper, personal care, and healthcare. An advantage of securing the services of professional agencies is assurance that a standardized advertising campaign will be developed around your business category, ensuring a uniformity of visual and copy. The main disadvantage is that the cost of the campaign may be too high for a start up.

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4. Commercial Representatives A fourth strategy is the use of commercial representatives. The function of commercial representation or sales agency is to identify and capture new business leads. A problem with commercial representation is that the accounts/ sales staff can be very challenging if relationship does not provide a positive return for the business. 5. Corporate Office A fifth strategy might be to outsource advertising, commercial representation or other direct support from an in-house function. This can bring efficiency and cost-saving, provided that the in-house function is well-