You will work with different parties in your business operations, and one of them is a supplier. This party will ensure you have the needed goods and services to run efficiently. However, disputes can arise between you two, affecting your operations.
Below are three factors that may contribute to this.
Substandard performance
Before signing a contract, you and your supplier agreed to certain terms, including the quality of the goods and delivery schedule. A supplier should meet these terms. They should deliver high-quality goods. In addition, the goods should be of the right specifications. Supplying you with substandard goods or the wrong items can lead to conflicts.
Substandard delivery performance is another factor that can lead to disputes. It’s vital to have a delivery schedule that allows you to have the goods/services on time without burdening the supplier. It can be a problem when a supplier delivers late or fails to inform you soon enough about a delay.
In addition, a supplier canceling to deliver an order may result in conflicts. If there is a delay, it will be best to find a solution but not cancel the order, as this can significantly affect your business.
An unclear contract
Some issues that arise between suppliers and businesses stem from the contract. Vagueness is one of the leading aspects that can cause misunderstandings. It’s crucial to have a clear contract that states the terms of the partnership and each party’s roles. The agreement should protect both of you.
Poor communication
You and your supplier should communicate to avoid conflicts. Not communicating enough or a lack of honesty can affect the relationship. If your supplier fails to respond to your emails or messages and you don’t get answers to questions in a timely fashion, that makes it very difficult to maintain a good working relationship.
Disputes with your supplier can negatively impact your business. It will help to employ conflict resolution strategies to protect your business.