As with any industry, maintaining close relationships with suppliers is not just a “nice-to-have” — ­it is essential for the smooth operation and success of your business. Our post-frame building industry’s unique demands and complexities require a reliable supply chain and strong partnerships with your suppliers. The stronger the relationship, the more significantly you can enhance your business’s efficiency, reputation, and profitability. Let’s explore why these relationships are so crucial and discuss some practical strategies for building and sustaining them.

Reliability and Consistency

In the post-frame building industry, timely delivery of materials is paramount. Projects often run on tight schedules where any delay in receiving supplies can slow the progress, leading to missed deadlines and increased costs. By cultivating mutually beneficial, close relationships with suppliers, you can ensure a more reliable and consistent supply chain. When the builder and the supplier are in sync not only early on in the project but throughout, a synergy can develop which helps build more of a team effort. This will serve both the builder and supplier well as they jointly develop a well laid out plan prior to even breaking ground. When the inevitable setbacks occur, this “team” approach will go a long way in transitioning to a smooth outcome. 

Cost Efficiency

Strong supplier relationships can significantly benefit the builder when it comes to your buy-in costs. Are there promotions upcoming or price increases on the horizon? Either one can really impact your bottom line. This can be especially important on large projects in scope or duration. With a close supplier/builder relationship — one seen by both as a long-term partnership — the opportunities to build in efficiency on both sides of the table can be huge. The key here is to truly build the often talked about “win-win”! Let’s build this relationship based on mutual trust and an understanding that both must profit. Be open about our needs, expectations and what we can and can not do. I suggest that projects based on strong relationships will always outweigh a simple transaction. 

Quality Assurance

The quality of materials is non-negotiable. Inferior materials can compromise the structural integrity of a building, leading to safety issues and potential legal liabilities. The aesthetic appeal can also be in play on today’s more upgraded buildings. Poor quality not only gives the individual builder a bad reputation, but also can taint the industry as a whole, affecting us all. Suppliers with whom you have a strong relationship are in a great position to ensure that not only do you receive high-quality materials consistently, but can offer guidance with regard to specific uses. They understand the importance of maintaining your reputation as well as theirs and are committed to providing products that meet or exceed industry standards and specifications.

Innovation and Improvement

One beautiful thing about our industry is that by far the largest share of suppliers share a “do it right” viewpoint. We are all interested and invested in a long-term relationship with your business. We are concerned that we all build this industry together and the right way. With this said, I can never stress enough the value of networking and the collaboration that follows. Innovative solutions and improvements will always come to the forefront when the supplier/builder team relationship is strong. So many great products and improvements come from this collaborative effort. Builder-provided insights into new products, technologies, and processes can enhance the industry in so many ways. Have open discussions about your ideas, thoughts and needs with your supplier representatives. We are always on the lookout for ways to improve our offerings and services to our customer friends. 

Strategies for Maintaining Strong Supplier Relationships

What are some ways to build these relationships? Make the commitment to build these relationships. Try to step out of the realm of transactional and into a true collaboration of efforts — a relationship.

Network 

Everyone is busy with the day-to-day, right? If you can work on the mindset that building a strong network with your close suppliers, the benefits will start to compound quickly. Time spent meeting and communicating with other network professionals is always time well spent. Building relationships before you “need” something goes a long way.

Spend a little extra time with your supplier representatives. Grab that quick lunch or after-work burger when they ask. Accept invitations for meetups at trade shows and industry association events. Visibility equals opportunity so don’t be shy. 

Clear Communication

Effective communication is the foundation of any successful relationship. Ensure that your communication with suppliers is clear, open, and consistent. 

Regular Updates. Keep suppliers informed about your upcoming projects, material requirements, and any changes in your schedule. Regular updates help them plan their inventory and production schedules accordingly. The sooner your suppliers are made aware of changes, the better equipped they are to respond to your evolving needs. 

Feedback. Provide constructive feedback on their products and services. Let them know what they are doing well and where there is room for improvement. This helps them understand your expectations and make necessary adjustments. Suppliers want and appreciate this feedback. It’s how we grow and get better. This especially applies to problem-solving. Issues are sure to arise. It’s always best to address these immediately and be open to a collaborative approach. Issue time more than ever is a time to work together on the same team.

Building Trust. Building trust is not a one and done. This is built over time. The more trust developed between parties the better. Trust is the cornerstone of strong supplier relationships. Building trust requires consistency, transparency and mutual respect. Be reliable in your commitments. Pay invoices on time, place orders as agreed, and honor your contractual obligations.

Transparency. So important. Be honest and transparent about your business needs and challenges. If you foresee potential changes in your order volume or project timelines, communicate these openly with your suppliers. Things change and suppliers truly do understand this. Just be open every step of the way.

Respect. Treat your suppliers with respect and professionalism. Recognize their expertise and value their contributions to your business. Like you, your suppliers are made up of people trying to do their jobs. Both supplier and builder are “for profit” entities. 

Mutual Benefits

A successful supplier/builder relationship must be mutually beneficial. A poplar phrases we hear often is Win-Win. Overused? I don’t think so. As with any relationship in life, if someone is always on the losing end…they will eventually take their ball and go home. With this said, please consider the following:

Negotiate Fairly. It’s important to get the best possible terms but, ensure that your negotiations are fair and reasonable. Avoid squeezing your suppliers to the point where their profitability is compromised. If a supplier is expected to be around to service your needs, develop new products and honor warranties, simply put: They must make a reasonable profit.

Supporting Growth. Help your suppliers grow and succeed. Share insights about market trends and opportunities that could benefit their business. Give them testimonials and recommendations. Consider collaborating on marketing initiatives or joint ventures that can drive mutual growth.

Loyalty. We all are in the game of looking for new business right? Of course we are. We all try to find the best deal, the best service. It’s natural and important. However, loyalty goes a long way in fostering all the benefits of long-term relationships we have discussed. 

Long-Term Perspective

Adopt a long-term perspective in your supplier relationships. Really try to stay away from the “What have they done for me today” mindset. Have they been supportive of your needs? Have they worked hard to assist? Place a high value on developing and maintaining the long game here. It will serve you well.

An important thought: I write this article from the perspective of what a builder can do to foster a solid, long-term and mutually beneficial relationship with their suppliers. Let me say this: Everything here equally reflects back to us on the supplier side of the relationship. When I say mutual — I truly mean mutual. FBN 

Randy Chaffee brings four-plus decades of experience to the post-frame and metal roofing industries. A board member for the Buckeye Frame Builders Association and the National Frame Builders Association, follow his podcast at facebook.com/BuildingWins. No web access? Call (814) 906-0001 at 1 p.m. Eastern on Mondays to listen.