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How to Manage Your Suppliers

Short of mind controlling drugs or shock collars, is there an effective way to manage your suppliers? Without them your business is like a body with a severed artery. You are bleeding while you wait for that shipment of goods to arrive. Your workforce, if not rendered idle, is certainly less productive during that often-prolonged interim. And, when you dare to call and complain, you get the same old run around. That's because your suppliers have forgotten one very basic law of supply and demand. And that is, simply stated, Demand is the boss.

Now I am not advocating your calling up the guy who supplies your printer ink and telling him either he gets the stuff here by noon or he's being replaced. But, sometimes, that is exactly the tact you may be forced to take. But before you go there, try this.

Suppose, after you present them with the facts, using specific details that they simply cannot argue with, they still stonewall you. That's when it pays to remember that there are other suppliers out there who'd love an opportunity to supply you with the merchandise or service your business requires, often at very competitive prices.

Next, employ firm diplomacy. Make sure that when you do call, you're talking to someone who cares enough about keeping your business to be concerned with your problem. Many times overworked customer service representatives don't have time or motivation to care. But a sales representative whose commission is on the line? He might just jump through whatever hoop it takes to fix the problem.

In the end, the approach is up to you but the answer is simple. You handle your suppliers by reminding them, as gently or as harshly as you deem necessary, that they work for you… not the other way around.

First, keep track of the problem. Facts and dates are like bullets. A gun without them doesn't make much impact.

Difficulty: Easy

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