THE IMPORTANCE OF A BUSINESS’ RELATIONSHIP WITH VENDORS AND SUPPLIERS

Among the things that can be critical to a business’ success is it being able to smoothly get the goods and services it needs for its operations. So, how things are going with the vendors and suppliers their company is working with can have significant impacts for a business owner.

Vendor and supplier problems can pose major difficulties for a company. A recent report points to them being one of the more significant sources of challenges for retail businesses these days. The report ranked risks for retailers. Problems with vendors and suppliers were among the factors identified as some of the biggest risks retailers face in 2017.

There are various things that could create vendor or supplier problems for a business. One is a souring of the company’s relationship with a given vendor or supplier. Such a souring could lead to the vendor or supplier terminating, or threatening to terminate, its relationship with the company. This could leave a company very concerned about its future access to the goods and services it needs.

As this underscores, the relationship it has with its vendors and suppliers can be a critical one for a business.

Sometimes, disputes arise between a company and one of its vendors or suppliers. Now, protecting the rights of one’s business can be critical when in a business dispute. However, there are also other things a business owner may care about quite a bit in such a situation. When the dispute is with a business their company has an important relationship with, such as a vendor or supplier, a business owner’s goals may include preserving the relationship if possible.

So, there are a range of different concerns a company’s owner may have when disputes with a vendor or supplier come up. Striking the right balance between their goals related to such concerns can be important when a business owner is addressing such a dispute. Owners can seek out assistance with this critical balancing act from experienced business lawyers.

Source: Small Business Trends, “The 7 Top Retail Risk Factors Your Small Business Faces,” Rieva Lesonsky, Aug. 29, 2017