Where these conditions exist, a preferred supplier agreement might encourage the supplier, for example, to improve its knowledge of the exporter’s equipment maintenance requirements, allowing it to make recommendations that extend the life of equipment and reduce costly repairs and down-time. The supplier could also carry spare parts, reducing the amount of stock an exporter needs on hand.
Other benefits include:
- Improved responsiveness and service levels from the supplier
- Longer term commitments from the exporter
- Cost savings for both parties through collaboration
- Consistent service delivery and improved customer satisfaction
- New technology through shared research and development
A preferred supplier relationship often involves regular meetings and information sharing, leading to improved performance for both partners and the opportunity to jointly develop better solutions for clients.
Implement your first preferred supplier relationship on a pilot basis. If successful, it can then be rolled out to other companies or prospects.
