Question

2. How would you build trust with your suppliers and address their concerns regarding the new relationship between Ford and its suppliers?

Answer 1

Cordial relationships with suppliers is an essential part of the success of any business. Suppliers not only give the goods and services needed to run the business but they also help as a vital source of information and advice.
Ford can opt to do the following activities in order to address concerns with their new suppliers and build good relations with them;

• Have a regular talk with the suppliers.
  
• Pay and clear the supplier's accounts timely and promptly.
  
• In case a payment is postponed for any reason, the suppliers should be communicated before the due date about the delay.
  
• Build cordial relations with any current suppliers and their representatives.
  
• They should be fair but also firm with the industry sales representatives as they may consume a lot of the company's time.
  
• Rush orders should be eliminated as they can cause a lot of stress in for the business thereby putting a strain on the relationship with the Ford's suppliers as well.
  
• The financial position of the suppliers must be monitored from time to time.
  
• Any issues or grievances regarding the suppliers must be addressed by the Ford representatives as soon as it arises before harm is done on the relationship with the suppliers.
  
• The damaged or faulty goods and services must be communicated to the respective supplier immediately along with supporting documents of that particular good or service.
  
• There is no harm in reviewing and renegotiating the terms of trade with the suppliers from time-to-time and the suppliers must be confronted about it once in a while.