How we may develop suppliers 'loyalty for buying organization? You may mention any three major ways.

A supplier will be loyal when the supplier gets the information and cooperation from the buyer in the following aspects:

1.     Make the procurement process transparent and fair. Explain the procurement process to all suppliers through an organized suppliers’ conference, may be once in a year. A supplier will be very happy when they know your process. Accordingly, they will give their best price and quality

2.     Discuss with the suppliers over phone or in a meeting and re-emphasize quality and delivery requirement. With this approach suppliers will remain motivated and try their best to supply the required quality of products within delivery schedule

3.     Pay the suppliers as per contract terms. When the suppliers gets paid as per terms, they feel that they have been rewarded for good work and will try to do better in the next order

 

 

 

1.       Be professional in dealing with them.

2.       Build relationship by virtue of trust.

 

3.       Thank them in any way for the support they have provided.

1. Build strong business relationships. This is foster proactive and open communication between the buyer and seller on company policies, procedures, requirements, expectations. This sets ground for constructive performance appraisal sessions. 2. Provide enablers to make performance by supplier possible including offering additional information, making clear specifications, responding to supplier inquiries, early payment etc. Generally buyer should perform their end of the contract. 3. Involve suppliers in company programs for example relevant company surveys, engagements, reward and recognition functions etc.

The following three ways shall ensure and develop Supplier loyalty,

1) Ensure them they will have business for longer run with assistance from us on all sides of business

2) Enlighten them that frequent supplier audit, surprise audit, supplier performance, penalty for non-performance etc., are done to continuously improve the performance of them and it will benefit both parties in the long run ( win-win situation for both)

3) Make sure even during bad times, that the both parties agrees to few give and take policies so that both can ensure losses are minimised

Suppliers are mostly concern with business so if we make sure that business with our company is easier for them they remain loyal. In order to do so the most important possible 3 steps could be:

1. Make the purchasing process very simple, clear, understanding and transparent. 

2. May sure to follow all the commitments you make to keep intact the integrity of your words and follow all strictly follow all the process at your end so that the supplier confidence is gained that if they follow the right procedure there is no obstacle in their business. 

3. V. Important always help the supplier to resolve issues related to payment delays on both ends. 

With these 3 major steps in mind, I believe any supplier would love to remain loyal and prefer doing business with such company even if they have to make lesser profits. 

3-Points

1. Making supplier aware that you are committed for long-term business

2. Ensure to fulfill your financial obligation ( his payment needs, terms ), so that he will feel

         secure to remain loyal

3. Make efforts to source through him ( other than what he supplies ) and make him aware

          that you trust him. He may have some 'mark-up' in his sourcing efforts from others - but

          it will encourage him to source for you - as he may have financial gains. Also expansion of

          product knowledge.

I do my homework first ...making sure that the vendor can do what he promises... meaning having the funds to procure my order.

I get 3 bits .... the bit with the best quality and shortest lead time gets usually 70% of my order, the second one 20% and the last one 10%........ all others get sorry you did not make it letter,but I am keeping you on file. I usually keep a good relationship with my vendors ...

I do not create emergencies on a regular bases, and that gives me the full cooperation of my vendors. I take time to meet with my vendors... they do appreciate it and remember you.

Vendors like large orders on regular bases... and make sure our controller pays them on time especially if they are small vendors.

 

From my experience the most three ways are:

1. Build a long term win-win business

2. Consider suppliers up normal circumstances (for example when they have hard times)

3.  Along with time transfer the relation from "contractual trend" to "trust trend"  

I would say that there is only one and single way to gain supplier's loyalty, which is:

 

Pay your supplier on time and according to contract's terms

 

That simple! The supplier is a company making profits as our company does. Therefore the ensured cash flow is really important and above of everything.

You may be as demanding as you wish. If you pay as agreed, your demands will be welcome.

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Be clear with what you want (specification)

Communicate honestly when things are urgent and when they aren't 

Pay on time

 

full agree with all expert answers