Building and Preserving Value in customer and supplier relationships.
Most businesses source products and services from suppliers and sell them to customers. We carefully select them, place orders, and pay for them. So why do the performance and the relationship sometimes deteriorate over time with these partners?
If we accept that in a world of limited resources relationships count then we would conclude we need to invest in this area.
What can happen with stretched resources on the buy-side is the only time you contact the supplier is when there is a problem and like any repeated behavior it eventually leaves a large negative psychological footprint.
A pragmatic solution I found to work in all businesses is to conduct regular Business Review Meetings BRM. These are just as relevant in start-ups, SMEs, and the smaller suppliers and customers in large businesses than just the top 10.
Structure BRMs around answering a couple of basic questions; What went well in the last period?
What did not go so well and how can we improve?
What does the next period look like and do we anticipate any problems we can mitigate?
This will unlock hidden value with your customers and suppliers that will propel your business forward. Invest in your key supplier and customer relationships.