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7 Easy Steps to Improve Supplier Communication

Introduction:

In today’s fast-paced manufacturing landscape, effective communication with suppliers is crucial for maintaining operational efficiency and meeting customer demands. As businesses face increasing pressures from changing market conditions and unexpected disruptions, building strong relationships with suppliers becomes more important than ever. This article outlines seven easy steps to enhance supplier communication, ensuring that manufacturers can adapt swiftly to changes while fostering collaboration and mutual success.

1. Agree There is an Issue

Some makers have gone as far as renting an aeroplane to escape having to pay late fees to their customers, but supplier misses are not a new problem. Manufacturers are rushed to get orders out the door when PO changes get lost in an inbox. This can hurt their relationships with their own customers.

While every company is different, here are some of the most common ways that bad contact with suppliers has hurt manufacturers:

  • Too much stock that can’t be sent out
  • Late fees from clients
  • Poor reputation for shipping late
  • Spending too much to fix problems (like on extra, private planes, processing fees, etc.)

Look at how well your team can ship on time and in full for a few weeks and write down why orders are late if you’re not sure if there’s a supplier communication problem in your business. We’re ready to bet that most of them have something to do with conversation.

2. Quit sending so many emails

There is a hole in the chain between your ERP and your providers, and most makers fill it with email for now.

There are some things that email can’t do. The other people on the team can’t see the emails that a buyer and a seller send back and forth about an order. This means that someone is responsible if someone else gets sick, takes time off, or just reads something wrong.

Email shouldn’t be used to talk about buy orders that are still being processed.

But what about taking care of relationships? Please keep getting to know people through email, calls, visits, and other means. We don’t want to put those ties at risk because they are holy.

Negotiating when line item “Bolt #A8905” can be delivered, on the other hand, works best when done in software.

3. Make it simple to change

We at Droppe think that PO communication software shouldn’t have a long, complicated user guide, and providers should be able to get it for free. When you do it this way, getting providers to talk to you through software instead of email is a much smaller ask.

4. Show how to communicate clearly

Use a tool that works better than email if you have one. As soon as something goes wrong and you need to hear back from your sellers quickly, use it. When things go wrong, it’s easy to fall back on old habits.

If a customer tells you that they need their order even faster than planned, you should first record the changes in the software you use for teamwork. Then let your vendors know by calling or emailing them.

Providers are more likely to use a contact tool if you offer one.

5. Be responsible with your suppliers

One pleasant surprise about moving from email is that it has given you a new way to hold suppliers responsible. If you only talk to people through email, it’s hard to know how often a certain source is late or how quickly they usually react to changes. That is, it’s hard to tell the difference between your average sellers and your great ones.

6. Tell others about your wins

All of the above tips are meant to help your business run more smoothly. What if, though, your suppliers only hear from you when they don’t follow your 24-hour PO acknowledgement rule? They may feel like they have to go through extra trouble for no reason.

That’s why it’s also important to give your sellers good comments. When you finish a tough order for a customer, don’t forget to compliment your seller on their help. Tell them how they helped you reach some important company goals when you look back at how they did last quarter.

7. Ask People What They Think about Supplier Communication

In the same way that you share some of your team’s successes, ask your best sellers to give you their honest opinions. Listen to them if they have questions, worries, or ideas for how to make things better. They probably work with a lot of businesses like yours and could tell you a lot about what works and what doesn’t.

The buyer-supplier relationship is a partnership, even though you have final say over the orders. Both sides should be able to give and receive feedback and talk to each other. We love helping to make that happen.

Conclusion:

In conclusion, improving supplier communication is essential for modern manufacturers striving to optimize their supply chain operations. By adopting these seven strategies, businesses can strengthen their partnerships with suppliers, minimize misunderstandings, and enhance overall performance. Clear and effective communication not only helps prevent costly delays and issues but also fosters a collaborative environment where both parties can thrive. Embracing these practices will ultimately lead to more efficient production processes and a more resilient supply chain.

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December 20, 2024