“Talia discusses preferred supplier programs from the supplier perspective.
“A supplier program will create efficiencies, improve qualities, and create cost savings. Some of the ways that this would happen is based on how the supplier engages with others.
When I had my event company, I sought out companies that had preferred supplier programs for one main reason. Rather than having to hit every single stakeholder within the organization and reselling them repeatedly we would sell ourselves as a company that wanted to be a preferred supplier.
The efficiencies for a supplier to know that they are on a limited supplier program will in turn offer discounts and comfort knowing where they stand. A preferred supplier is only as good as their last event. Therefore, by giving feed back and allowing them to understand what they did wrong immediately, suppliers will benefit significantly for the future. Suppliers who receive immediate feed back after an event will improve their performance by over 30%. This improvement is due to two underlying reasons: One is that they need to know what they do and they need to know that you are measuring their performance. This allows them to continue their business while allowing you to continue building a strong relationship with these suppliers.
Overall, a preferred supplier program is beneficial to a company for these three main reasons: Efficiency, quality, and cost savings.
“Most importantly, true strong relationships are formed with customers through preferred supplier programs.”