B2B Marketplace: Solving 5 Common Challenges in Supplier-Retailer Relationship
Having a good relationship has always been important, especially in the world of business. It literally can make or break a company or an organization. In the retail industry, the supplier-retailer relationship can be established in many different ways, however, some factors may make the transaction easier, while some others make it somewhat difficult. Both parties need each other for profitability and growth. So, how does one get a fruitful relationship with a supplier or a retailer? What are the common challenges and how can it be avoided?Let’s list down 5 common challenges in supplier-retailer relationships. Surely, many businesses out there can relate to these challenges.
1. Trustworthy Suppliers
A relationship is always built on trust. Generally, the supply chain relies on suppliers to fulfill orders in a timely and reliable manner. It is a given that the customers would expect their orders to arrive on time as well. If suppliers fall flat on their deliveries, the supplier-retailer relationship becomes unreliable, making loyalty and trust for both parties hard to establish. There are plenty of ways to develop a relationship based on trust and loyalty but many would not deny that this could be a long process. Some businesses thrive because they put in the work in cultivating relationships and in the long run, has proven to be extremely beneficial.
Price is always a deal breaker in terms of buying goods. Most customers would always opt for the lowest priced products. This pushes every company to make adjustments in terms of pricing in order to compete in the current market. This may include shouldering additional costs such as shipping and storage fees for instance. It’s difficult for any supply businesses to simply lower down their prices instantly. Furthermore, if the goods are not selling well, orders might be pulled out by the retailers. Suppliers must then, look for other easy and innovative ways to ensure that they are always one step ahead of their market competitors while at the same time supplying at a minimal cost.
3. Innovation & Market Growth
For every company, innovation and growth are always important. In the supplier-retailer relationship, this process might not be as easy because there are many things to be considered.For retailers, they have to take into account how to source for innovative products that will raise demands from the end consumers. Meanwhile, for suppliers, there is always a constant need to come up with new products while making sure that costs are controlled. It is never easy to make changes, especially if it involves a lot of steps. The process is lengthy and sometimes difficult to realize.
4. Stock Availability & Delivery
Most retailers procure and source from their long-term suppliers with business relations being established from the generation before them.The supplier-retailer relationship is then predominantly dependent on pre-formed connection and referral. However, having secured suppliers through this method may not necessarily guarantee you the most efficient procurement experience. Issues such as on-time stock delivery and stock availability would still surface despite having ordered from a trusted supplier.
Hiring staff is always a challenging step for almost every company. Looking for the right candidate who possesses the right knowledge and expertise can be tedious and time-consuming. This situation similarly applies to both suppliers and retailers. The search to find proactive sales personnel, detailed management board members, and resourceful support team may require a lot of effort. All in all, the communication dynamic between staff from both parties - supplier and retailer, determines the progress of the transaction between the two within the supply chain tremendously.Check out our previous article on the "5 Biggest Challenges Wholesalers & Distributors Face Today" here.
A Partnership Built On Trust
In this age of eCommerce and digitalization, Dropee has managed to create a B2B market that understands and supports both suppliers and retail business owners. Dropee eCommerce Marketplace is a platform that could easily solve all the challenges mentioned earlier in the retail supply chain. It’s one of the first platforms in Southeast Asia to be offering multinational companies access to quality products and online retailers who sometimes unable to meet order requirements for bulk orders. The platform is trusted by many brands across Malaysia and other countries worldwide.
- Dropee’s goal is to help small and medium online and offline entrepreneurs discover products easily online. This will help business owners save more money and focus on growing sales.
- Dropee offers a B2B product sourcing platform for all retailers to search for quality products. All suppliers on-board is encouraged to offer new products and offers in order to strengthen their online presence on the platform.
- Dropee works with many independent brands locally and internationally. Business owners are always assured to be able to source for various high-quality and unique products.
- Cut down on the number of staff. Dropee offers a one-stop marketplace that aims to connect suppliers to business and SME owners while giving both parties an easy fulfilment process with the help of automation and digitalization instead.
Dropee was born through a desire to modernize and digitize the traditional ways of procuring and product sourcing. Change is never easy but brands need to adapt and grow to integrate into a new and much more convenient retail-supply concept. Hence, find products on Dropee now! Get instant access to hundreds of trusted suppliers now and manage all your orders in one place. Increase your sourcing channel with new prospects from Dropee.