Supplier Relationships: Where Breakdowns Occur

Supplier relationships do not break down overnight. Often the reasons or causes for the breakdowns are not those in the moment, but those that companies do not prepare for. A breakdown with the supplier relationship is often tied to a mistake that takes place days, months or even years before. These mistakes take many forms, but usually fall into one of four categories: (1) pre-contract Mistakes, (2) contracting mistakes, (3) relationship mistakes, and (4) termination mistakes.

One of the most common pre-contracting mistakes is an inadequate request for quotation or other bid document. Documents soliciting bids should provide the detail necessary for a supplier:

• The format should be consistent, clear, and easy to understand.