Keeping Your Suppliers Happy

Managing suppliers is an often neglected part of the financial manager's craft.  Everyone understands the importance of keeping customers happy (provided they pay their bills) but there can be a different attitude to suppliers, who are seen as a necessary evil at best, an annoying distraction at worst. There always seems to be a supplier kicking up trouble for you at the very time when you’re busiest with other things.

The positive side for you is that suppliers only want one thing from you – cash. If you can keep a steady flow of funds to them, they will not bother you.

This article sets out how to look after suppliers in a way that will minimise the distraction and the time spent.  

Key points:

• Work on your systems to ensure they are as efficient as possible

• Target a reduction in phone calls received from suppliers chasing money

• Build relationships internally and externally

• You may still have to delay payments, but don’t compromise your ethical standards