Sustainability has become an extremely relevant topic in the corporate world in recent years. But when we talk about B2B and the relationship between buyer and supplier, this term is not limited to environmental issues, but also to longevity. In other words, the type of partnership established between the parties and how healthy it remains over time.
In a scenario like the one we are experiencing today, with risks, crisis and economic instability, continuity in the relationship is extremely important to face this delicate moment and not harm either side of the chain. Thinking about this, before cutting costs, for example, is essential for the post-pandemic period.
Cost cutting weakens business relationships
It is common for the first thing to come to mind when faced with a crisis to be protecting your financial health, but cutting costs at any cost may not be the best way to minimize risk – you need to think about the post-crisis period. For example, is it worth cutting the contract and threatening the survival of a supplier who provides satisfactory service to your company? Or is it better to try to negotiate a deal that is good for both parties and further strengthens the relationship? The relationship will certainly be strengthened once the turbulence has passed.
Those who are able to be creative and create a collaborative network between companies and suppliers will achieve better results. The corporate world works like a beehive. Every business decision a businessman makes affects other companies – whether they are customers or suppliers.
It is necessary to act together, and not just think about the short term, to talk to the companies that are part of the same chain and try to find solutions that preserve the partnership and trust between strategic allies.
It is necessary to act in the crisis without ignoring that it will pass
We are going through an unprecedented crisis, and there are no ready-made answers. However, after five months of living in this scenario, we have noticed that companies that are managing to reinvent themselves, reconfigure processes and carefully review resources – understanding, in fact, whether the best strategy really has to do with lower costs – are becoming stronger.
This process also involves the ability to decide not to just cut costs randomly. It is necessary to know where to cut costs so as not to jeopardize the health and future of the company. Changing suppliers based solely on the fact that it is cheaper to pay, without considering other criteria, can compromise the quality of deliveries and customer satisfaction, for example.
In general terms, it is necessary to act during the crisis without ignoring the fact that it will pass – yes, it will pass! In many cases, the most assertive decisions take into account the importance of maintaining partners and continuing to work with quality materials and services that are customized for your business. This way, the company will be prepared to return to normal production when the economy recovers.
This article was written in partnership with Marcelo Pereira* and Priscila Miguel**
*Marcelo Pereira, supplier management specialist at Mercado Eletrônico
**Priscila Miguel, coordinator of FGV-CELOG (Center of Excellence in Logistics and Supply Chain at FGV EAESP)
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