Essentially every company that manufactures goods today depends on other companies to supply the raw or value-added materials that go into their finished products. Most companies recognize that good supplier relationships are more than simply arm’s length transactions between opposing parties. A better way of looking at those relationships is as partnerships—albeit ones that require management and alignment of objectives first and foremost, but ultimately mutually beneficial relationships. The job of procurement is to ensure performance is as promised, risk is low and business objectives are being met through collaboration. When suppliers are treated as partners, they can be a huge asset in times of trouble. Especially today, with some industries moving from a buyer’s market to a seller’s market, many suppliers can have their pick of customers, especially if some are easier to do business with, foster collaboration, listen to new innovative ideas and, most importantly, pay on time.
