How To Manage Strong Attitude Suppliers？

For well-known or giant companies, almost all suppliers are not strong suppliers, because the company’s annual procurement volume and industry status will make all suppliers flock to them, and these suppliers want to enter the company’s supplier resource pool even if they break their heads. However, the topic of strong attitude supplier management is a topic that medium and small companies may encounter. 

What is a strong attitude supplier?

First, the annual sales of the supplier greatly exceeds the maximum purchase amount that the company can achieve in this category each year.

Second, the products provided by suppliers are highly integrated with the company’s own exclusive technology, and it is difficult to find alternative products or services in this industry.

Third, suppliers have been in a leadership position in the industry. To sum up, in terms of order saturation, the supplier has never been short of customers who can fill the company’s capacity. Therefore, the management of the supplier has become a more challenging thing.

The relationship with a strong attitude supplier will directly affect the delivery timeliness of some products. If the product is not supplied in time, it will affect the production line and it may lead to customer complaints and ultimately affect customer satisfaction.

How To Manage Strong Attitude Suppliers？

1. Seek the high-level intervention of both parties, and the buyer and the supplier can carry out a series of business activities on the basis of the top-level framework, so that for the middle-level or specific executors, at least there can be rules and evidence to follow.

2. Within the price range that the customer or the customer can afford, the two teams can share the benefits, at least the supplier can see the profit.

3. Both sides establish an equal and limited communication mechanism. For buyers, usually more or less make unreasonable demands on suppliers. But for this type of supplier, the buyer needs to lower their mentality and deal with the supplier according to the real situation of the development.

4. Manage such suppliers as customers. If you have time, you can go to the suppliers and talk about the supply of products, hot topics in today’s society, and the development of new technologies and processes. Contact and connect feelings to maintain the relationship between supply and demand.

5. If this type of supplier is designated by the customer, please ask the customer to help to intervene when necessary.

6. This type of supplier is more responsible to keep up with their promise. Therefore, before cooperating with such suppliers, it is best to sign a contract with clear conditions and detailed terms. In the supply process, the buyer and the supplier shall strictly follow the content stipulated in the contract.

7. Actively develop alternative suppliers. Although the development process has twists and turns, if it can finally succeed, it will greatly alleviate the unfavorable supply situation under the current situation.

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https://www.lkkerscm.com/archives/service/supplier-management