Advice For Sustaining Partnerships In Manufacturing & Industry Spaces

No manufacturing or heavy industry is an island. That much is essential to keep in mind when planning your business approach and where you’ll deliver value, because you’ll never be able to do it without a careful web of suppliers and other partnerships to keep you going.

But of course, learning how to achieve this is not always clear. Perhaps your small business is becoming known for its project-planning potential and is securing better and better clients, or maybe you’re expanding into a brand-new field. For both these goals, and plenty more, it’s worth learning to negotiate the best terms, to understand your production tree, and avoid unvetted suppliers.

In this post, we intend to offer some helpful advice you can move into the new year with, making good on all opportunities afforded to you:

Vet Suppliers Carefully

This starts with due diligence, because that builds the foundation for everything else. Of course, that’s not just about making sure a good deal isn’t going to bite you in some way – though that’s important – but about dependability, quality, shared values and delivery timelines. Suppliers should be able to provide for your needs not only in their offerings but in how they conduct business in a wider setting.

Get into the habit of checking references, and asking for samples. Also, don’t hesitate to conduct site visits when possible. A supplier might look good on paper, but their operations in practice could make you want to run a mile. Investing this time up front helps you deftly sidestep costly issues later, such as delayed shipments or materials you can’t use and have to fall into a protracted legal battle to recuperate.

Pay Invoices On Time

Of course, if you want to sustain partnerships, you have to pay them. We’re sure you’re glad you came here for such blinding wisdom. But jokes aside, suppliers often juggle many clients and late payments can disrupt their cash flow, potentially souring your relationship and even causing you to be set to the back of the queue during busy periods. Now, if there’s a grace period within which to pay, it’s your right to use that. But it’s always healthy to pay as soon as you can. That’s because those prompt payments show you’re a respectable partner. Perhaps they’ll offer delivery more easily. The same could be said in the reverse direction, as you act as a vendor for a client. This often means that when issues come to play, like needing expedited delivery or resolving issues, a supplier who trusts you is more likely to go the extra mile or even add little bonuses here and there. For instance, you may gain discounts or priority services. It’s a small way to keep goodwill, but it counts.

Make Contracts Clear

Never keep it verbal, even if you’re just a small business working with local tradies. A well-structured contract is going to sustain your supplier relationship and protect both parties. They can also help clear up and miscommunications that can lead to misunderstandings, which can ripple through your production schedule or budget and not in a fun way. Have your legal representation draw this up and allow them to check it over, outlining expectations, timelines, penalties, and any other specifics relevant to your collaboration.

The most important advice is to never rush the negotiation process. Just take the time to spell out every detail, even if it’s boring. Payment schedules to dispute resolution procedures all count, and of course, this might be formatted from deal to deal you do, but cusotmize them as necessary as well. Then, both parties should walk away with a clear understanding of their responsibilities and protections. That goes no matter if you’re hoping to bring on a freelance content creator for your marketing department as a continual outsourced aid, or using the best Westpower rotating equipment to help structure a large manufacturing facility.

Utilize Reliable Brands For Long Contracts

If you really need a huge task completed, it’s best not to take a risk. Of course, this doesn’t mean dismissing smaller or newer suppliers outright, as sometimes, they can offer pretty novel solutions or more competitive pricing. However, for high-stakes, long-term partnerships, betting on experience and reputation is often the safer choice – so look for suppliers who can demonstrate consistency in delivering quality and meeting deadlines. It might prevent you from being stung later on down the road. You can always pivot to other suppliers on a project by project basis.

With this advice, we hope you can more easily sustain those essential partnerships in both manufacturing and industry spaces, and remain better off for it.