Vendor relations

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1. VENDOR RELATIONS

2. VENDOR RELATIONS Vendor relations is also known as purchase order. Here,the term vendor refers to the suppliers ,who supply the merchandise to the retailers. When the retailer finds the right merchandise he places an order by giving the vendor or the vendor’s sales rep his Purchase Order,which is called as purchase order.

3. NEED FOR VENDOR RELATIONS The relationship you have with your vendor can have a large impact on your profit and net income. Knowing how to develop a relationship with your suppliers so that they are responsive to your store's needs will help ensure your company's success.

4. ADVANTAGES OF STRONG VENDOR RELATIONS Strong vendor relationships are important to any retail businesses, but especially to smaller companies . One advantage big-box retailers and other large corporate chains have is bargaining power, which lets them negotiate better prices with vendors. While small businesses can't get the price benefits of a big box retailer, they can still build strong relationships with vendors to give them a leg up on the competition.

5. PRICE Building a good vendor relationship means being consistent with your orders, doing a good job of selling the vendor's product, and being on time with your payments . When you establish the kind of relationship a vendor can depend on, he is more likely to give you a discount on his products. In this respect, vendors and retailers aren't just buyer and seller -- they are partners in delivering value to the end customer.

6. FLEXIBILITY Despite the efforts of vendors and retailers to build a well-planned, systematic supply chain with predictable ordering and delivery schedules, things change . Increased customer demand at the store level means you need vendors who can adjust quickly to get additional products out the door to you. If your relationship is strong, it is easier for you to make a call and get a vendor to act quickly.

7. QUALITY IMPROVEMENTS Part of serving the end customer's needs is delivering a quality product that exceeds expectations. Sometimes, products have flaws or defects that need to be corrected or replaced altogether. . While vendors normally have to make the adjustments, it is retailers who tend to hear the most feedback from customers . With a strong vendor relationship, you should be able to take customer wants and needs to your suppliers and encourage them to respond quickly to changing customer demands.

8. CUSTOMIZATION Strong vendor relationships help your business offer more customized products. Book retailers, for example, may not have certain books in stock. But they can help customers search vendor directories, process an order and receive it within a short period of time . By syncing computers with a vendor, you both can share customer and inventory data to best meet the needs of everyone.

9. INNOVATION Suppliers can make major contributions to your new product development. Remember, they live their product more than you do; they're working to be on the cutting edge of innovation for their product.

10. FINANCE If you've proven to be a considerate, loyal and paying customer, you may be able to tap into your suppliers for additional financing once you hit growth mode--or if you run into a cash crunch. That financing may take the form of postponed debt, extended terms on new purchases, a loan, or an investment in your company . All of these improve your cash position

11. HOW TO BE A VALID CUSTOMER In order to be a valued customer to your suppliers, here are a few things you should do: Always pay on time : Pay your bills on time! You can negotiate for favorable payment terms before you place an order, but once the order is placed, don't renege or attempt to change the rules. If you can't, call up your suppliers and tell them why and when you will pay. Don't play games with suppliers' cash. You'll be absolutely amazed at the goodwill and benefits you will earn by observing this simple rule.

12. Provide adequate lead times; Try to give suppliers as much lead time as possible on your orders. Unless there's a compelling, competitive reason not to, share with them an honest projection of your needs and keep them abreast of any significant changes in that estimation. When developing your lead times, it helps to be knowledgeable about your suppliers' production methods and needs. Personalize the relationship; Visit suppliers' offices. While you're at it, include them in some of your strategy meetings. Invite them to break bread and invite them to your office parties and picnics .

13. Share information ; Keep the good suppliers aware of what's going on in your company. Tell them about changes in key personnel, new products, special promotions and so on. Many times, you'll find that good suppliers can be help you find new customers.

14. CONCLUSION Developing good relationships with suppliers is not a complicated process. Be communicative, treat them fairly, be demanding (coupled with loyalty) and pay them on time. It's that easy.