To realise the potential of SMEs, we need to ensure selected suppliers have the appropriate standing within the industry. Working with such suppliers will raise the level of performance across the supply chain – because your suppliers insist on it!

A-category suppliers will only work with you if they hear about your innovative strategies and impressive objectives. These strategic ideals will raise returns and that is what they want to hear before they will consider working with your team. And boy, we all need them on our team!

Imagine having suppliers making suggestions to increase your margins, reduce costs, or offer advice during R&D inclusion initiatives. This sounds logical and sensible, but so few SMEs have this in place!

“Why would these A-category suppliers help us?” Well, they are not only helping you. The structure of the supply chain needs to be inclusive so all participants prosper. This is how supply chains add value.

“Why don’t many of these suppliers form part of SME supply chains?” The answer to this can be seen as a bit of a catch-22 situation. One of the most common reasons is that these suppliers are not the cheapest. With so many sourcing teams focused primarily on the cost price of an item, A-category suppliers tend to form part of supply chains of very innovative and wealthy organisations in the main. However, the reason for these companies are wealthy is due to them having a supply base full of A-category suppliers.

The fact that these organisations are willing to pay more stems from the fact they know that what they get from their partner is worth so much more than a more favourable cost price.

The question that needs to be asked is whether you need a partner for the purchase. If that is the case, ensure you know what is included in each prospect’s offer before selecting which supplier suit your needs most.