The Art of Supplier Relationship Management
The best pricing comes from strong relationships. Here's how to build partnerships that serve your practice well.
Why Relationships Matter
Good supplier relationships deliver:
- Preferential pricing and terms
- Priority during shortages
- Faster issue resolution
- Early access to new products
- Flexibility when you need it
Building Strong Partnerships
1. Consolidate Your Business
Suppliers reward loyalty. Concentrating purchases with fewer suppliers gives you:
- Higher volume = better pricing
- Stronger negotiating position
- Dedicated account attention
2. Pay on Time
Nothing damages relationships faster than late payments. Benefits of prompt payment:
- Maintain credit terms
- Qualify for early payment discounts
- Build trust for future negotiations
3. Communicate Proactively
- Share growth plans
- Provide feedback (positive and constructive)
- Give advance notice of large orders
- Discuss challenges openly
4. Be a Good Partner
- Reasonable return expectations
- Realistic delivery demands
- Fair resolution of disputes
- Recognition of good service
Negotiation Best Practices
Do:- Know your numbers (spend, volume, trends)
- Research competitive pricing
- Ask about available programs
- Consider total value, not just price
- Make threats you won't follow through on
- Constantly pit suppliers against each other
- Ignore service quality for small price gains
- Burn bridges over minor issues
The GPO Advantage
TGP manages supplier relationships on your behalf:
- We negotiate contracts annually
- Monitor supplier performance
- Address issues across the network
- Maintain professional relationships
You get the benefits of strong relationships without the time investment.
Join TGP and leverage our supplier partnerships.