Businesses that supply other businesses have been around as long as business itself. In the modern world, where we rely on suppliers to meet our business needs, we have come to appreciate what a great service suppliers are often willing to provide for us. Their loyalty, their trustworthiness and their willingness to go the extra mile are things that we value in our suppliers and try to cultivate throughout our supplier network. So why do so many businesses keep on purchasing from the same suppliers over and over again? It is because it is probably the most reliable way to ensure quality and customer satisfaction. When you reduce your supplier base by choosing your vendors wisely, you increase your chances of working with companies that provide high-quality products at a competitive price. If you prefer not being bound by contracts, this may be a good decision in your business growth strategy.
A supplier base is a great way to ensure quality and customer satisfaction
This is probably the number one reason why businesses choose to expand their supplier network. When you have suppliers who are among your closest partners, the relationship only grows stronger. The base that you start with is the foundation for future success and collaboration. The same can be said for the teams that work with you as your suppliers. When they are on the same page, deliveries are quicker, communications are easier and problems are fewer. A supplier-fidelity study conducted by Mphasis found that 91% of suppliers reported an increase in sales after joining a network. It is interesting to note that 90% of these suppliers also said that the sales increase was at least partly caused by the new customers they were able to acquire as a result of the new connections.
Why Grow Your Own Business?
There are a number of reasons why you might want to grow your own business. Perhaps you are the parent company and you want to outsource some of your smaller projects and tasks. Or perhaps you have a spare time and want to invest in your business and ensure it grows in a healthy, sustainable and profitable way. Whatever the reason, there are a number of steps you can take to grow your own business. One of the best ways to ensure growth and success of your business is to partner with other businesses. In reality, you are competing with other small, local businesses just trying to get their foot in the door. When you partner with other businesses, you are not only expanding your network, but you are strengthening your ties with the entire supply chain. You strengthen your relationships, which are the foundation for future growth.
Increase Customer Satisfaction
One of the things that make suppliers reliable and trustworthy is the way they handle our business. When we are dealing with a supplier, we expect quality products and services at a competitive price. When we are dealing with an employee vendor or a contractor, we expect quality work at competitive rates. When we are dealing with a business partner, we expect excellence in all that we do. When you have this level of customer satisfaction and trust, it means that both you and your customers are more likely to be satisfied, too. If you have a bad experience with a supplier, it may be difficult to get your head around why things went wrong. When you have a bad experience with an employee, on the other hand, it is much more likely to stay with you.
Avoid Irrelevant and High-Cost Purchasing
There are a number of things to consider when it comes to avoiding high-cost purchasing. First, let’s talk about the types of products and services you purchase. When you purchase a lot with a single purchase, you save money in the short run. However, it is usually a sign that the product is overpriced. Ensure that you are purchasing products that fit within your budget and that you are willing to make sacrifices in terms of quality. How can you tell if a product is too expensive? Here are a couple of things to consider: – Are the upfront costs too high for the value that you receive? – Does the price begin to increase as the product ages? – Do you have a sense of how much the product’s value will increase with age? – What happens when the product stops working as expected? – And finally, do you have a sense of whether you would be willing to forgo the product’s value in order to acquire it now?
Wrapping Up
As businesses, we rely on suppliers to deliver quality products at a competitive price. When you reduce your supplier base by choosing your vendors wisely, you increase your chances of working with companies that provide high-quality products at a competitive price. If you prefer not being bound by contracts, this may be a good decision in your business growth strategy.