The rapid spread of the COVID-19 virus put an unforeseen strain on supply lines everywhere. Supply shock initially struck as the virus began in China. The disruption was only increased via a corresponding demand shock that took place as the pandemic spread and consumers everywhere rushed to prepare for looming quarantines.

The scenario resulted in one of the greatest business lessons of 2020: robust supply chains really do matter. While a "lean and mean" approach may save money, supply chains must also be strong enough to survive the unexpected. One of the best ways to address this concern is by building strong relationships with your suppliers.

The Importance of Building Strong Supplier Relationships

It doesn't matter if you're part of a group purchasing organization or you're orchestrating your own independent supply chain. Most businesses need to work with suppliers in one way or another. If you require materials on a regular basis, in particular, chances are you're going to put down roots with your suppliers over time.

This naturally creates a necessity to develop strong relationships in the name of long-term sustainability. If this is lacking, it can be difficult to maintain consistency in the quality of your products or services as you're forced to reshuffle your supply chain on a regular basis.

The concept of building strong supplier relationships is nowhere better exemplified than with the Rochester grocery chain Wegmans. For years now the supermarket enterprise has been known for its ability to go above and beyond for strong supplier relationships.

It does so by focusing on concepts like joint planning, measuring progress together, and setting common goals. In a word, Wegmans invests in its relationships with its suppliers. This isn't seen as a simple or affordable activity. On the contrary, company exec Marianne Timmons described the process as "hard work." This should come as no surprise, as the retailer clearly strives to create what can only be described as full-blown partnerships with its suppliers.

It's easy to see the value of strong supplier relations. However, cultivating them is another matter. Here are some key considerations to keep in mind as you select and then foster a relationship with your supplier.

Vet Each Supplier Carefully

Building a relationship always begins with choosing the suppliers themselves. As you go about procuring materials for your business operation, make sure to take your first contact with each supplier seriously. Before you vet each supplier, create a list of the most important factors that you're looking for, such as:

●      Experience: Is the supplier experienced in its field? This will directly influence your ability to build a foundation of mutual trust.

●      Efficiency: Is the supplier able to provide the quantity of materials that you require at an acceptable speed? An efficient network of suppliers is essential to maintaining a professional business model.

●      Authority: Is the supplier prominent in its industry? Does it have a good reputation? This can impact the quality of the products and materials that you purchase.

●      Referrals: Can a supplier direct you to past customers that can report positively on their experience?

●      Ethics: Does the supplier's code of business ethics sync up with your own organizational beliefs? There are numerous examples of suppliers violating the ethical stances of a retailer without the latter's knowledge. Make sure each supplier can be trusted to uphold your business's particular commitments to corporate social responsibility.

Make sure to address things like experience and ethics as you consider which supplier to ally yourself to. If your goal is to establish a strong relationship, you must start by confirming that the foundation is there to build on in the future.

Maintain Respect

Once you've chosen your suppliers, it's time to develop the relationship itself. At this point, there should be a shift in your perspective. The auditing nature of choosing your suppliers must be replaced with one of respect. Decisions should be made with an eye not just toward your organization's success but the ongoing supplier relationship as well.

In other words, you must learn to prioritize your relationships with your suppliers as items of value in and of themselves. Don't simply operate based on the choice that leads to the lowest cost or most beneficial activity for your business. Make every sourcing decision one that takes your entire supply chain ecosystem into consideration.

This doesn't mean you cannot put your company first. However, you must maintain respect for your suppliers as well. Remember, by doing so you're investing in the future prosperity of your enterprise. You can demonstrate a sense of respect by giving suppliers lead time on orders, paying promptly, and communicating consistently. In general, the goal should be to treat each supplier as a peer rather than a third party or, even worse, no more than a replaceable piece of your supply chain.

Strive to Build Diamond Relationships

From vetting suppliers to maintaining respect, always strive to create diamond relationships as you work on your supplier relations. The term "diamond relationships" refers to a B2B affiliation that is focused on quality. It is a centerpiece in Wegman's aforementioned supplier relations activity.

Of particular note, diamond relationships highly focus on maintaining the perspective of a partnership. It resists the tendency to view a supplier as little more than a link in your supply chain. Instead, the focus revolves around investing time, effort, and resources into creating win-win scenarios. When this happens, it provides a mutually beneficial business model that encourages a strong relationship both now and far into the future.