Why transactional supplier relationships hurt customer experience

𝗧𝗵𝗶𝘀 𝗜𝘀𝗻'𝘁 𝗠𝘆 𝗣𝗿𝗼𝗯𝗹𝗲𝗺. I can never forget hearing those words from a key supplier early in my procurement career. We had a product delivery issue, and their response was blunt. The impact was not just the cost 💰 But reputational damage and a lot of operational chaos. At that time, I thought Why is this happening? But looking back now, after 16 years in procurement I see the root cause clearly: A Fractured Supplier Relationship. 𝗛𝗲𝗿𝗲’𝘀 𝘁𝗵𝗲 𝘀𝘁𝗼𝗿𝘆: Years ago, I worked on a resourcing project Where we sourced with a supplier solely based on pricing due to cost pressure. Communication was minimal, expectations weren’t formally aligned, and trust was non-existent. When challenges arose (and they always do) Instead of collaborating on solutions, it became a blame game. 𝗧𝗵𝗲 𝗜𝗺𝗽𝗮𝗰𝘁? 🚨 Delayed timelines and threat to customer line supportability. 💸 Expedited Premium freight costs that wiped out our “savings.” 🛠️ Resources diverted to firefighting instead of innovate. 💡 𝗪𝗵𝗮𝘁 𝗜’𝘃𝗲 𝗟𝗲𝗮𝗿𝗻𝗲𝗱: That experience taught me the hidden costs of poor supplier relationships: ➡️ Lost Agility: Without trust, suppliers are less willing to adapt during crises. ➡️ Higher Total Cost: Low price doesn’t mean low cost. ➡️ Missed Innovation: Strong suppliers often bring ideas to the table, but only when they feel valued. Now I’ve shifted my focus from just negotiating contracts to building partnerships. 𝗧𝗵𝗶𝘀 𝗶𝗻𝗰𝗹𝘂𝗱𝗲𝘀: 💎 Investing time in supplier development. 💎Ensuring open communication channels. 💎Recognizing their wins as much as ours. Today, my best supplier relationships feel more like strategic alliances. When problems arise, we tackle them together because trust has already been built. 🚀 𝗠𝘆 𝗔𝗱𝘃𝗶𝗰𝗲: Whether you’re in procurement or supply chain, don’t overlook the power of relationships. They aren’t just suppliers; they are your partners in success. 📢 Have you ever faced hidden costs from poor supplier relationships? How did you turn it around?

Most attractions focus on improving the customer experience. But they often miss one critical factor: the relationship between tech suppliers and operators is what defines that experience. Think about it. 🤔 A venue can only create a seamless event if their systems enable them to deliver exactly what’s needed, when it’s needed. 🤔 An attraction can only offer premium guest experiences if their systems and processes are aligned with their vision. 🤔 A tour can only elevate its offering if their tech suppliers innovate alongside them. Yet, in so many cases, these relationships are purely transactional. ⁉️ Operators treat suppliers as interchangeable, squeezing them on price instead of collaborating on value. ⁉️ Suppliers struggle to prove their worth beyond product or service delivery. ⁉️ The result? Missed opportunities, inefficiencies, and customers who don’t get the best experience possible. Now, imagine a different approach... ✔️ Suppliers and operators working as true partners, not just vendors and buyers. ✔️ Co-creating solutions instead of just negotiating contracts. ✔️ Sharing insights, refining processes, and continuously improving what’s delivered to the end customer. When this happens, everything changes. 🫶 Operators unlock new revenue streams through premium offerings. 🫶 Suppliers create stronger, longer-term relationships. 🫶Customers get better, more seamless, and more memorable experiences. The businesses that understand this aren’t just selling tickets or services. They’re designing ecosystems where everyone wins.

Are you treating your suppliers as well as you are treating your customers? If not, then you can’t be making a huge mistake. My company, Nickel City Polymers acts as a customer and a supplier for the past 25 years So I understand both ends of the spectrum. What I’ve seen on the supplier side is customers treat their suppliers with disrespect when it comes to a two sided relationship. When the customer needs something, they expect the supplier to jump through hoops and act immediately. When the supplier has a question for the customer often times they are ignored because that customer views them as just a supplier. What that means is, they view them as an as needed vendor. When we need, you will let you know. Too much of that one-sided relationship leads to degradation from the supplier. The supplier will eventually not respond to that customer’s inquiries because of being treated like this. What does that mean for the customer? What happens when they actually need that supplier to supply a crucial material for them? Will the supplier be so fed up by at that point that they will not even respond to that customer? I’ve seen it happen. I’ve eliminated customers because of this treatment. So in the end, I treat my suppliers as well as I treat my customers. I value those relationships probably more than I do my customer relationships. Because I know if I have good long-term relationships with suppliers that will lead to business regardless. Your supplier relationships especially in my business are the most important relationships you can establish. I’ve worked for 25 years establishing these supplier relationships and this one thing has made me successful. It gives me the ability to get better pricing. It gives me the ability to get better availability on the products that I actually need by treating my suppliers very very well.