Suppliers and purchasing

When it comes to building a market and servicing it, you and your suppliers are on the same side, so you should consider trying to build a relationship with them that reflects that.

Sit down with them as 'partners' and try to work out an arrangement that benefits both parties.

Try to identify:

• Products you can order in larger volumes in exchange for volume discounts
• Orders you can discontinue because you can buy more cheaply elsewhere
• Ways to revise delivery schedules to reduce your stock keeping costs
• Opportunities to share marketing or promotional costs
• Ways you can exchange information to improve efficiency at both ends

In a period of economic difficulty or uncertainty, remember that suppliers might raise their prices, so try to negotiate a long-term discount with them.

You could also consider putting all major costs out to tender on a regular basis.