Building strong relationships with suppliers can lead to a range of benefits, including better operations, smoother data flow, and mutually beneficial outcomes. However, failing to manage vendor relationships effectively can result in potential losses, such as lost revenue and time spent fixing errors.

To establish effective vendor management practices, it’s essential to develop a well-designed process that takes into account the unique roles of each vendor. This process involves investigating potential vendors, understanding their businesses, and negotiating partnerships based on a relationship that both parties want to last.

For more information on improving vendor management, refer to the accompanying resource.