Just like in any relationship, time can take its toll and the excitement and contentment synonymous with a new partnership can slowly fade away, leading to tension, animosity and frustration. The same can be said for the relationship your OEM enterprise has with its suppliers. When supplier relationship management begins to weaken, it’s only a matter of time before someone gets hurt – and it’s probably going to be you and your revenue.
When partnerships begin to break down, the warning signs are always there. We just need the courage to recognise and face them head-on. And when the growth of your business is at stake, it’s crucial that you be honest about the state of your supplier relationships and take the steps needed to source your components from a vendor who shares a mutual desire for a stable supply chain and lucrative business partnerships – you can get electronic components here, for example.
Unsure if it’s time to move on? Here we’ll explore the undeniable signs that you need a new components supplier.
Communication Is Non-Existent
When it comes to relationships – business or personal – communication is key. And when you’re an OEM enterprise being pulled in multiple directions, you need to know that your suppliers are keen to answer your queries, resolve issues and give your regular updates about your orders and shipments.
If you realise you need to order additional components to fulfil an order for a client, yet your current supplier takes 5 days to respond to your request, then you’re going to miss out on revenue and potentially lose clientele. If your current supplier is failing to prioritise communication, then it’s time to move on.
Product Quality is Causing Problems
When your assembly lines are moving to keep up with client demand, hiccups are inevitable. However, if you’re noticing an increase in problems with your purchased component parts, that is either causing issues on the assembly line or via customer complaints further, then it’s a sign that quality is slipping and the satisfaction of your enterprise is no longer considered a priority for your supplier. Handling quality issues is part of your daily grind, however, when these issues begin to impact your revenue, it’s time to move on and maintain the edge over your competitors.
They’re No Longer Considered Reliable
The occasional late order due to unforeseen circumstances can be forgiven and understood. However, when your supplier is becoming less and less reliable and is persistently falling beneath your standards, it’s time to look elsewhere.
Shipping delays, forgotten orders, missing components, incorrect billing – all of these are massive headaches for your company, creating more admin and wasting more of your valuable time and resources. If your supplier is dragging their feet, it’s time to kick them to the curb.
And Finally, You Want to Reduce Costs
A good sign of supplier relationship management is the ability to come to an agreement over pricing structures that benefits both parties. If your current supplier leaves you no wiggle room, yet you know you can source your parts for cheaper elsewhere, you should open the lines of communication and discuss your options.
Any of these situations sound familiar? Consider sourcing your components online to maintain your competitive edge and move on from your current supplier.