The most productive and beneficial business relationships are ones where both parties work together in concert for mutual success. Good relationships and collaboration with vendors allow you to focus on your core competencies and scale faster. According to a McKinsey & Company survey including more than 100 large global companies on supplier collaboration practices, the companies with advanced collaboration capabilities had EBIT (Earnings Before Interest & Tax) growth rates that were double that of their peers.

Businesses who view vendors as partners, rather than a necessary operational factor, find these vendor relationships can serve as a strategic competitive advantage.  Strong partnerships throughout your business provide a higher quality experience for both parties. As this Inc. Magazine article notes, you must have, “long-term customers and good vendor relationships that will carry you through challenging times or tight deadlines…”  This idea applies to almost all industries.

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SOURCE GreatAmerica

The Finance Process in Seven Steps