Disclaimer: The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the official policy or position of WERC.
A former colleague of mine once stated that working with supplier partners/vendors should be viewed as a holistic partnership rather than a transaction. As I thought about this, I realized I needed to better understand the meaning of “holistic.” “Holistic” is “characterized by the belief that the parts of something are interconnected and can be explained only by reference to the whole.” With that in mind, I began to appreciate the true value of partnerships. As a relocation management company (RMC), we utilize numerous supplier partners in various representative industries, and we are only as solid and reputable as the suppliers we utilize.
Differences Between Vendors and Supplier Partners
I have heard a lot over the years about the use of the word “vendor.” A vendor is someone who, for example, sells hotdogs from their cart on the streets of a busy city. This isn’t meant to be disparaging, but unless you really like hotdogs, you’re probably not going to establish a strong relationship. It’s a simple transaction. Vendors provide a solution to a need, whereas supplier partners are ideally regularly involved in providing services to your company. They are truly an extension of the RMC.
The Importance of Mutual Respect
RMCs want to be treated well and respected by the clients they represent. Supplier partners also desire the same respect. We’re all working together to bring solutions during a volatile time for clients’ relocating employees and share the same desire to make the process as stress-free as possible. Supplier partners aren’t the enemy. They don’t want to create issues that will put them at risk of losing business or damaging their reputation. However, they do want to be heard, treated with respect, and collaborated with to find fair solutions without feeling like there are fingers pointing at them.
Handling Challenges in Partnerships
Occasionally, there are unfortunate situations where a challenging transferee takes advantage of a supplier partner. There is a correlation that questionable behavior relating to a relocation can carry into the workplace, and clients should be aware of these egregious circumstances. When discussing with partners, it’s very important to listen to all sides of the story. There are times when resolving issues can be a relatively simple fix, but other times it can be gray, and trying to find an equitable solution can take some time. RMCs shouldn’t put partners in position that they feel they are obligated to just make the issue “go away.”
Effective Supplier Management Strategies
There are strategies for effective supplier management that can improve relationships, such as:
- Understanding Needs: By taking the time to communicate with suppliers, you can build a better understanding of what they need from you, and vice versa. The more information that can be provided with an initiation assists the process flow and can also eliminate back-and-forth questioning.
- Collaborating on Solutions: Effective communication can help identify and solve problems. By keeping the lines of communication open, especially as soon as an issue or challenge is known to arise, you can work together to develop solutions that benefit both parties.
- Managing Expectations: Clear communication is essential for managing expectations with suppliers. Make sure that you’re both on the same page in terms of timelines, delivery schedules, and quality standards.
- Building Trust: Trust and loyalty are the foundation of any long-term relationship, and it takes time. Building trust and loyalty comes with being transparent, honest, and respectful. Honor commitments, make payments on time (or even earlier than expected), and give mutual respect.
The Role of Effective Communication
Effective communication is imperative. All parties should be involved, especially when issues arise. Nowadays, much is done with email, and this can be effective, but when there becomes so much back and forth and many parties are involved, details can become muddy. Sometimes a simple call or a virtual meeting with the relevant parties can solve the problem. As an RMC, it’s also important to listen to partners input, suggestions, and concerns. Supplier partners are experts in their respective fields and have valuable insight and experience that can be shared and learned. When there are opportunities with strategic partners, meetings should be scheduled with counselors, account managers, and partner contacts to further build relationships.
Onboarding New Supplier Partners
When onboarding new supplier partners, expectations should be clear from the onset: contractual terms, payment terms, how initiations should be sent, contacts to be reached out to, invoices to be sent, etc. Getting started properly can set the tone for a solid partnership, as well as alleviate unnecessary stresses upon transferees.
Maintaining Successful Supplier Partnerships
Successful supplier partnerships involve:
- Proper Expectation Setting: No one wants assumptions to be made. It’s important to have service level agreements in place to measure goals and review on a regular basis.
- Collaboration: By working together, quality is improved, costs can be reduced, and there is enhanced reliability and increased innovation. It’s also important that business development teams communicate regularly with each other to look at opportunities to serve mutually beneficial clients.
- Providing and Receiving Honest Feedback: There is always room for growth and improvement. Supplier partners should feel comfortable enough to relay concerns they have as well. Partners want to feel they are a valued extension of your organization. This comes with building trust in the relationship.
- Celebrate Successes: Something as simple as a positive transferee survey should be shared with partners. We all know the negative evaluations will come, as it’s human tendency to want to send feedback when things don’t go as anticipated. Partners need to be aware, as it’s an opportunity to learn. But the positive evaluations also need to be shared.
Having long-lasting, trusted relationships with suppliers should be a primary goal of any RMC. However, it’s also important for businesses to understand why some relationships may not work. Some reasons include:
- Promising Too Much and Delivering Too Little: This can be a situation where expectations don’t meet reality. For example, a van line partner may accept a move during summer peak season because they don’t want to decline but they don’t have the capacity to handle it or there isn’t a good traffic lane, and it could turn our poorly.
- Having a Communication Gap: This is where things get derailed when crucial information isn’t relayed correctly or there’s no clear communication path. Even small misunderstandings can lead to major disruptions. Lack of communication can lead to assumptions being made as well as an unhappy transferee.
- Service Level Agreement Challenges: Not meeting agreed upon performance criteria or referral fee agreements can have a negative impact. Sometimes a partner will need to be placed in the “penalty box” to make improvements.
- Consistent Patterns of Poor Service: When there is regular poor feedback from transferees, clients, or from relocation counselors, it could signal that there isn’t a good partnership and it’s time for changes to be made.
There are situations in which partnerships aren’t mutually beneficial. Sometimes it simply may not be a good match. There should be contractual agreements in place that either party can terminate, and it should be done respectfully. No one wants a bad image or reputation to be portrayed. RMCs more often control the terms of the relationship, but suppliers also need to know they have input as well and contracts need to be reviewed thoroughly before implementation.
Understanding Cultural Norms
An often overlooked but very important function involves understanding cultural norms and differences for better RMC-supplier relationships. Understanding how other cultures conduct business and understanding their values produces trust and mutual respect. This leads to better relationships, which leads to more reliable business practices. By creating the space for regular and meaningful conversations about performance and communication, you can foster and nurture a culture of collaboration and innovation.
Aligning Strategies
Align supplier strategies with your own, and leverage their expertise and capabilities to drive competitive advantage. Research new products, explore new markets, and even consider joint development initiatives. The strategic level of partnership demands a deep understanding of your strategic suppliers’ strengths and weaknesses, as well as a high level of commitment and trust.
Simply put, the RMC-supplier partnership relationship should be about the Golden Rule: treating each other like you want to be treated. This is a foundation that can lead to a healthy and long partnership and will reap rewards for all involved.