Looking for ways to improve the flow of your purchase orders and stock management? It all starts with your vendors! Luckily, we're here to share four steps you can take to better manage your small business' vendors.
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TRANSCRIPT:
Your vendors supply your small business with the products that your customers want.
On the other hand — your vendors need your contract to stay in business themselves.
It’s a mutually beneficial arrangement — but if the relationship with your vendors has soured — it can feel like you’re swimming upstream.
In fact — many business owners cite failed vendor relationships as one of the top reasons why small businesses fail.
Not to worry — in this video — we’ll share four simple steps to improve vendor relationship management.
The first step is to set clear expectations from the start.
In your contract — ensure both parties understand all elements and are on the same page.
Communicate about anything that is unclear before moving forward.
It also helps to be proactive.
Try to anticipate potential problems you and your vendor may face — and set up a game plan for how you’ll overcome challenges.
It’s this kind of collaboration that helps nurture a healthy relationship from the start.
Step two – invest in the right tools.
Vendor management is about people — but it’s also about data.
A tool you should absolutely invest in — is a reliable point of sale solution.
Robust POS software like POS Nation’s allows you to track all orders and interactions with vendors.
You can also integrate vendor management with your inventory — making it possible to spin up automatic purchase orders when specific products are low.
Running your business with a powerful all-in-one solution gives you all of the information you need — helping you identify holes in your processes early on.
The third step is to establish KPIs.
Are your vendors meeting your expectations and helping you reach business goals — or are they holding you back?
The only way to know for sure is to set up and track metrics.
Establish KPIs early on and make sure you have the proper systems in place to track them.
KPIs aren’t static — so be sure to review them over time.
The data you receive will give you clear and objective information about your vendors’ performance.
From there — you can decide if it’s worth signing a new agreement once your contract is up.
The fourth and final step is to communicate consistently.
Misunderstandings can stem from miscommunication — or a lack of communication altogether.
Schedule regular meetings to touch base with your vendors and ensure both parties are satisfied.
Keep your vendors in the loop about goals.
They may want to collaborate or offer advice — as your relationship is mutually beneficial.
And while this can be difficult — be open about any challenges you’re having as well.
Address issues respectfully and in a problem-solving mindset — and keep this same composure if your vendor brings up issues on their end too.
Like any relationship — the one with your vendors is a two-way street.
We hope you give these 4 steps to improving vendor relationship management a try!
When it comes to the success of your small business — vendors are a significant piece of the puzzle.
If you have any questions — or you want to learn about our retail POS solution — reach out to sales@posnation.com.
Thanks for watching!
