Good supplier relationships are without a doubt vital if a business wants to control costs and have a healthy supply chain. As far as shipping and freight are concerned, BCOs (Beneficial Cargo Owners) are the customers who directly or indirectly, have to work, collaborate and manage business relationships with several suppliers.

1. Play Nice: What is the Cost
of Poor Supplier
Relationships?

2. Join The Conversation
On Twitter
@XENETA_AS

3. About
Xeneta
Container Freight Pricing
Transparency With One Platform In
Real Time & On Demand.

4. Are You Paying The
Right Container Freight
Rates?
Discover Savings
Potential In Real
Time.
Contact Us.

5. Good supplier
relationships are
without a doubt vital
if a business wants
to control costs and
have a healthy
supply chain.

6. As far as shipping and
freight are concerned, BCOs
are the customers who
directly or indirectly, have to
work, collaborate and
manage business
relationships with several
suppliers.

7. These suppliers
may be VOCCs
(Vessel Operating
Cargo Carriers - or
in simple terms,
Carriers), OTIs
(Ocean Transport
Intermediaries like
NVOCCs or Freight
Forwarders),
Haulers,
Warehouses,
Depots, etc.

8. To keep their supply
chain functioning as
expected, for a BCO,
fostering a healthy
relationship as a
company with their
supplier partners is a
must which in turn
provides some
substantial long-term
benefits that work to
the advantage of all
parties.

9. Long-Term Effects Are
Detrimental

10. While short-term gains from
pushing suppliers around
might give companies more
capital to play with, the
long-term effects are
significantly more detrimental.

11. The practice of extending payment terms, for example, would give
a company more on-hand capital at the expense of making their
suppliers wait to be paid.
In long-term vendor contracts, many companies end up leaving
money on the table simply by not treating their suppliers right.
In the case of Procter and Gamble, their suppliers have to wait 75
days to receive payment which has added approximately $1billion
to P&G’s cash flow.

12. Of course, it’s not just the
automotive industry that has issues
with suppliers that aren’t being
treated right. Just In Time deliveries
are very prevalent and common
also in the retail sector and many
carriers are tasked with delivering
the cargo at the right time.

13. Learn how Xeneta can help
You get insight and intelligence
into your global ocean freight
prices and change your logistics
business:
Request
Demo Now

14. But at the other end
of the spectrum,
suppliers also need
to have some
reciprocity in terms
of penalties. Just as
late deliveries affect
the customer,
suppliers are also
affected due to
customers reneging
on their booking
volumes.

15. No-shows or late
cancellation of
containers has
been a bane for
many carriers as in
many cases they
are unable to
replace the
bookings lost at the
last minute. have
succeeded.

16. Advantages to Building a
Strong Supplier Relationship

17. Building good business
relationships means that partners
are more willing to cooperate or
even go above and beyond what is
typically expected.

18. The advantages
that can be gained
by building strong
supplier
relationships in the
automotive
industry:

19. OEM suppliers are more willing to invest in new technology which
means an overall better product for the auto-makers.
Suppliers are more willing to support the company beyond the
terms of their contract.
Such support improves communication and suppliers tend to be
more honest with their partner companies who treat them well.
Last but not least, they’re more willing to give a price concession
to the OEM which means more money saved in the long run.

20. How to Build a Better
Partnership

21. Working with a
supplier should
never be a “once
and done”
relationship. As
the PPI study
points out, the key
to building a better
business is to
start by building
better
relationships.

22. The key to a
successful and
long-lasting supplier
relationship is that
both parties need to
walk away happy at
the end of the day.
Doing that means
that both
companies end up
being more
profitable and

23. A well-working business partnership hinges on accurate,
actionable, and transparent data.
As our industry moves towards the digital era, having access to
the right data at the right time and anytime is beyond necessary.
If we would like to translate this into the world of shipping, it’s
important to understand that suppliers, like the companies buying
their goods, all rely on freight transportation to get the product

24. Of course, it’s not just the auIt’s
critical. Doing that not only ensures
a better relationship with suppliers,
but it helps to keep your supply
chain moving in the right direction.