Building a Positive Relationship

Credibility in the marketplace can have a positive impact on whether customers and companies are willing to do business with your compaity. If you treat your suppliers well, word gets around, and others will be willing to work with you as new technology is developed. If you beat up your suppliers, that word gets around also, and other suppliers look elsewhere to build their business and share technology. 

An example of this today can be found in the domestic automobile industry. Automakers continue to demand price reductions from their suppliers and increased performance at the same time. This has caused a number of them to go bankrupt, while others are woiking on changing the focus of their businesses. 

Once technical people from both companies begin to talk, problems can often be resolved rapidly and before any crisis occurs. This is also a w of learning about new technology that is in development. It m help your organization develop new products as well as improve existing ones. Being first to market with new products can be very beneficial for both oi nizations 

Have you ever worked for a company that did not have credibility in the marketplace and try to convince suppliers that you are serious this time This is a very difficult situation to be in and sometimes some dramatic moves or changes must occur for you to really get the supplier s attention. When it is only your word, it may be a very hard sell. When trust has been broken it takes a long time to regain that trust. Good faith will have to be demonstrated on a small scale before trust will begin to be reestablished. 

Have you ever seen companies put out lists of products to bid on and they bid the same product to several suppliers This might get them a volume break, but it really can destroy credibility and the potential to build a preferred supplier relationship. 

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