Qualities Of A Great Supplier

All businesses are both buyers from suppliers and suppliers of goods or services themselves. Because of this dual nature, knowing how to be a great supplier is doubly useful for any business. Nevertheless, there is a strong case in thinking that we would derive more insights if we approach this from the point of view of a buyer.

Before finished products become what they are in store shelves, they were first unpackaged manufactured parts, which came from several to be assembled parts, which derived from smaller parts, raw materials or even smaller or unprocessed parts gathered by people or businesses we call suppliers. In this chain of events that lead to buying and selling, good quality is something that is passed on from the very materials used, process made, to the finished product. This is why superb suppliers matter. Behind quality outputs are quality materials.

What makes a great supplier? Right off the bat, a lot of us will say that they are the ones that can offer the best materials at the lowest cost. But is it all that? In this world where needs are only standards and wants are the ultimate differentiators, and given the competitors’ ability to nearly the same products or services as your company can, a good supplier is what can set you apart from the pack. Here are some of the qualities that define a good supplier:

• Mastery. An excellent supplier does not only act as a supplier, but also a consultant for its customers. Mastery over what you sell is a sign of how ready you are to provide quality service. You do not only focus on how much you can sell in a single transaction. Good suppliers focus on the quality of products/services they can provide. This means that they also try to evaluate whether the order of their client will do well for the purpose the client wants to use them, or another item would, even if that other item is cheaper. By treating your clients’ businesses as your own and choosing the right quality part that you can provide, you are showing how proficient your company is as a supplier.

• Trust. While some of you might argue about this and say that being equally fair to new and old clients is the right way, good suppliers are those who recognize the trust reposed to them by their key accounts, and shows their appreciation back by allowing a few changes in the company’s natural course of operation, such as prioritizing their orders, adding a few perks, or even allowing a longer credit limit. Key accounts are called as such because they are the lifeblood of the company. They are customers who choose you repeatedly because of your level of reliability that they like. There are a lot of bidders out there trying to compete with your price, and some may even be unthinkably lower than yours. It is only common courtesy to acknowledge your key accounts in a more active manner.

• Follow through. Not just for suppliers, a good service is when you follow through and see how satisfied your customers were with your output, and asking them for suggestions on how you can improve your services. If you are a supplier of construction materials, have you asked your past clients how they found the quality of those materials? If you supply parts of gadgets, do you know if there were any callbacks or warranty claims because of poor performance of your parts? Following through is not just a sign of courtesy and building a relationship with your clients, but also a sign of how willing your company is in accepting flaws and preventing them from happening again in the future.

• Consistency is key. Although first impressions make lasting opinions about your company, consistency is what builds its image not only from the point of view of your loyal clients, but also from the point of view of the entire market. If you as a supplier want to establish credibility in your products/ services, then you must consider first impressions as your benchmark for all dealings. If you put a high quality, customer-friendly outputs in your first try with a new customer, your next outputs must never go less than that. Consistency is what clients look for as it allows them to gauge how much they can trust a supplier. Remember that these clients may be counting on your company to provide them the necessary materials on time, in quality condition, and without any conflicts. Remember: consistency is continuous care for clients.

• Innovation. The truly great supplier never stops to rest on past accomplishments. Innovation must be constant or else it is only a matter of time before competitors catch up. New or improved products and services must be introduced and to do this well, a suitable budget must be allocated for research and development. Failing to do this may produce a quick improvement in cash flow in exchange for killing the future prospects of the company.

It is evident that it is not an easy feat to excel as a supplier. To do so demands an obsessive effort to cater to the needs and desires of the buyers. Be bold in investing on this objective. One must take the long-term view and not exchange a long-term relationship for short term profits.

*Originally published by the Manila Bulletin. Manila Bulletin, C-2, Sunday, December 20, 2015. Written by Ruben Anlacan, Jr. (President, BusinessCoach, Inc.) All rights reserved. May not be reproduced or copied without express written permission of the copyright holders.