MANAGING SUPPLIER RELATIONSHIPS

1. Maintaining good relations with a supplier should be as important to a contract administrator/end user as getting the best price. A good buyer-seller relationship is a partnership, a win-win situation over the long run. A supplier who is treated with courtesy, honesty, and fairness will deliver a quality product at the best price, will provide good service, and will be responsive to emergency situations and special requests. A responsive supplier is an asset for the University community.


2. There is also a public relations aspect to purchasing that should not be overlooked. An organization’s public image can be a valuable asset. A supplier who is treated equitably and professionally is likely to communicate his positive experiences with your organization to his associates.


3. Guidelines for Successful supplier Relationships:

• Use established supplier partnerships to best leverage the collective University volume, to consolidate orders, and to reduce administrative processing costs. You will receive outstanding prices and excellent service.

• Be fair. Give all qualified suppliers an equal opportunity to compete for business.

• Maintain integrity. A supplier’s pricing is confidential and should never be shared with another supplier for any reason.

• Be honest. Never inflate requirements to obtain better pricing. Negotiate in good faith. Don’t change the requirements and expect the supplier to hold his pricing.

• Be ethical. Procurement decisions should be made objectively, free from any personal considerations or benefits.

• Be courteous. A contract administrator/end user should make an effort to receive sales persons to the extent that his or her work schedule permits.

• Be reasonable. A supplier is entitled to a fair profit.

• Pay promptly. The purchase order you issue to the supplier is your promise to pay for the goods and services you buy in a timely manner (usually within 30 days).