Treat Your Suppliers Like Partners

We are back for another Wednesday chat and this week we are talking a bit about supplier relationships!

Running a business is hard enough without trying to do everything alone. You depend on customers to buy, employees to deliver, and partners to support you along the way. One group that often gets overlooked in all the hustle? Your suppliers…

For small and midsize businesses, supplier relationships are often the lifeline between staying operational and grinding to a halt. The right supplier will do more than drop off goods or send a service invoice. A strong supplier will have your back when times get tough and in today's unpredictable market, that’s not just helpful it’s essential.

So what does a “strong supplier relationship” really mean, and why should it be near the top of your priority list? Let’s jump in!

Think of suppliers not just as vendors, but as strategic partners. When you build trust and reliability with them, it opens up flexibility and support you simply can’t buy off the shelf.

Say you’re facing a tight cash flow month (we’ve all been there!). A supplier who knows you, trusts your history, and values your partnership might extend payment terms, help you prioritize critical inventory, or push your order through faster. That’s the kind of support you want in your corner when times may be tough.

When your supplier knows your business and your goals, they can even anticipate needs and suggest smarter ways to buy or operate. It’s that level of insight that turns a transactional relationship into a competitive advantage.

Where Supplier Relationship Management Pays Off

Here are a few areas where managing and nurturing supplier relationships can have a real impact on your operations and your bottom line that I’ve seen over 15 years:

• Cash Flow Flexibility: Trusted suppliers are often more willing to negotiate payment terms or allow temporary extensions when you're going through a rough patch.

• Priority During Shortages: In times of scarcity whether raw materials or shipping containers, strong relationships often mean you get priority over others.

• Discount Opportunities: Suppliers may offer better pricing or early-payment discounts to businesses they know are dependable and repeat buyers.

• Problem Solving: If an order is delayed or a product arrives damaged, a good supplier will jump in to fix it quickly, sometimes even before you ask.

• Better Communication: You’ll get faster updates, more transparency, and often better coordination when you’re viewed as a partner rather than just another customer.

• Innovation & Ideas: Suppliers are often on the front lines of industry changes. A tight relationship means you get early insights into trends, tools, and cost-saving strategies.

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You don’t need to send gifts or take your supplier out for dinner every quarter.

Small, consistent actions can go a long way toward building goodwill:

• Pay on Time (or Communicate Early): Few things build trust like reliability and if you’re going to be late, let them know in advance.

• Give Feedback: Share what’s working and what’s not. Most suppliers appreciate the opportunity to improve.

• Be Loyal: When you find a good supplier, stick with them. Switching frequently over a few cents here and there can cost more in the long run.

• Include Them in Planning: Share your goals or upcoming projects so they can plan ahead or offer ideas. Obviously we can’t share everything, but if there’s a big project where you’ll need them it may be helpful.

• Treat Them Like a Partner: Respect their time, ask for their input, and value their expertise.

Contact me if you’d like to network or partner together. I’d love to chat with you more about the services I offer on the side through Guernsey Consulting. If you do not know, I work full time in Treasury Management and do consulting on the side. Would love to chat or network with you about it.

Some of those services are listed below that we can help you with!