Three Red Flags That Suggest You're Better Off Breaking Up With Your Supplier
You probably have a pretty stringent employment process when it comes to bringing new people into your business, but we’re betting you don’t do the same for your suppliers. After all, suppliers don’t actually work for you. As such, you may feel more comfortable knowing less about them or letting them through your defences without investigation. Unfortunately, that can soon result in trouble.
At the very least, a bad supplier is liable to leave you facing unnecessary delays. In the worst-case scenario, they could even create legal or reputational damage that you struggle to come back from. Hence, it’s important to not only choose your suppliers wisely but also to cut ties with a supplier as soon as they show signs of becoming a problem. To help you achieve this latter goal, we’re going to consider three red flags that definitely warrant a supplier breakup as soon as possible!
# 1 - Communication Complications
While you might not talk to your suppliers as much as your in-house team, you do need some line of communication to ensure that deliveries run on schedule and that you can handle any issues promptly. In an ideal world, suppliers should be fully willing to communicate via your chosen method, and should provide regular updates, real-time delivery tracking, and phone calls whenever you need them.
If your supplier isn’t doing this, then there’s something wrong. In fact, this is one of the surest signs that you’re facing reliability issues with a supplier. If you want to stand any chance at smooth deliveries and arrivals, either address this issue or, if your attempts receive radio silence, cut those ties!
# 2 - Lacking Transparency
You don’t need suppliers to tell you their life story, but you do need them to be upfront about required information. Detailed invoices are especially vital. Meanwhile, suppliers should inform you about things like their brand ethics and sustainability goals, which must always align with your own.
But what if your supplier is reluctant to tell you anything about how they operate? Or, how about it, they fail to include vital invoice info like a tax ID or VAT number on their invoices? You know what we’re going to say – get rid of them! Aside from leaving at risk of legal trouble, a supplier who isn’t transparent could well be hiding skeletons in the closet that, if you don’t cut them loose now, could look bad for you later!
# 3 - Inability to Commit
You wouldn’t hang around for a guy who can’t commit, so don’t make that mistake with your suppliers. An unwillingness to sign contracts or commit to long-term plans is a sure sign that a supplier is keeping one foot out the door. If you don’t push them out now, they may well run and leave you in the lurch later. So, say it how it is – either they commit to your company, or they should find work elsewhere.
Suppliers are essential to business success, but don’t be a sucker if you spot any of these red flags!
