In “Investing in a Long-Term Brand Supplier Relationship”, we discussed some of the benefits of long-term relationships. This included advancing sustainability goals, mitigating risks, sharing rewards, and promoting transparency. But how can you ensure the foundation of the relationship is built to reap these benefits?
Pactics’ Customer/Supplier Framework establishes the conditions of a long-term brand supplier relationship. This document guides the customer through key decision-making moments, from getting an initial quotation to delivering the finished products, which are important in establishing a relationship of transparency, collaboration, and trust.
We have found that the intrinsic tie between compliance and relationship terms including purchasing standards, forecasting, payment terms, etc. are often overlooked.
A supplier’s compliance is important for the social, environmental, and financial well-being of all stakeholders. But we have found that the intrinsic tie between compliance and relationship terms including purchasing standards, forecasting, payment terms, etc. are often overlooked. In establishing fair and balanced relationship terms, the Framework supports the successes of both the supplier and the brand.
An essential factor in determining the success of a brand supplier relationship is whether both parties’ values are aligned. Pactics prioritizes the health and wellbeing of our employees and the environment. We are happy to share our certifications demonstrating best practices and welcome our customers to visit our facility anytime.
However, it is also important to ensure that these priorities are shared by our partners. The Framework outlines the values and interests of both parties to guarantee we are in sync. When brands and suppliers’ values are aligned, both parties can be confident in the activities of the other as there is trust that each other’s practices represent these values.
Value alignment creates an environment conducive to close collaboration in achieving sustainability goals such as eliminating the use of plastic in packaging or researching innovative sustainable materials.
Also, the values of a party can indicate future goals, especially when it comes to sustainability. Value alignment creates an environment conducive to close collaboration in achieving sustainability goals such as eliminating the use of plastic in packaging or researching innovative sustainable materials.
As seen with the global pandemic and subsequent crises affecting the supply chain, risk is inevitable. But it is how suppliers and brands work together that determines the outcome of such external risks.
The Framework promotes transparency for both parties. For example, if there is a delay in the delivery of raw materials, suppliers choose whether to disclose this information to their customers. And in an industry where transparency has traditionally been an exception rather than the standard, it is not uncommon for suppliers to withhold information that may cause concern for their customer. With long-term partnerships, suppliers and brands operate on principles of openness.
What happens when transparency is embedded in the foundation of the relationship? The supplier and brand can work together to find a solution at the first indication of a problem to minimize any deviations from the original plan.
In outlining the manufacturing processes, from ideas of a product to finished goods, and instilling elements of transparency, collaboration, and trust throughout it all, Pactics’ Customer/Supplier Framework supports prosperous, long-term relationships and allows for the continued success of both parties.