VET YOUR SUPPLIERS! GOOD STAKEHOLDER RELATIONSHIPS WILL BOOST YOUR PROFITS
Suppliers play a strategic role in your business because if they fail to deliver on time or with the required quality, they can cause delays in your organisation. These delays will inevitably have a knock-on effect to your customers.
How to ensure you get high quality suppliers
Best practice dictates that vetting procedures are in place that cover, at least:
Getting the most out of suppliers
In the new King IV Report there is a section on optimising stakeholder relationships by an “inclusive approach that balances the needs, interests and expectations of material stakeholders in the best interests of the organisation over time”.
This involves understanding what they want and ensuring there is a mutual relationship of trust which will last a long time and from which both parties will get the outcomes they want.
An honest, transparent relationship with your suppliers will bring good long term profit to your business.