Top 10 Challenges faced in Buyer Supplier Relationship Management


One of the most looked through a relationship in any business is the one that the buyer and supplier share. While you aspire to deliver high quality, it is important to maintain a healthy relationship with your supplier. The number of errors in the system can actually result in unwanted outcomes. The source of error could-be-anything. Understand and rectify the problem to its exact necessity.

Suppliers play a crucial role in any company’s success. It is important to manage a healthy relationship with your supplier. Here are the top 10 Challenges faced in any buyer-supplier relationship management and how they can be resolved:


Supplier’s Track Record

The first step to take before engaging with any supplier is to go through his past and current projects and to investigate his knowledge about tax and legal implication of exporting and importing. Knowing the supplier beforehand helps to create and build healthy relations.


Also Read: Top 8 Ideas To Enhance Business Productivity without much effort



Understanding The Culture

Belonging to a different culture may give rise to different views and interpretations while having the same conversation.


Communication gap

Communication is absolutely necessary for many aspects of the business. If a supplier doesn’t understand the company’s strategic goals that may fulfill the needs and requirements due to poor results. Maintaining a good contact with the suppliers can benefit the organization in a big way.


Non-Transparency of Processes

Many times, non-transparency of the supplier’s process creates gaps in the company-supplier relationship. Technology can play a crucial role to fill this gap. Analyze the whole process more efficient by using an online purchase order and invoice management tool like Invoicera.


Stressed Supplier

Suppliers deal with many organizations at once. Often the order is delivered late by the supplier because of the unavailability of the product. These type of late deliveries can weaken the relationship. Forecasting the requirements of the company can help in running the SRM process smoothly.


Related post: Buyer-Supplier Relationship Management Best Practices



Damaged Delivery

At times, the delivered product turns out to be damaged or flawed. Aggressive steps at such times can ruin a relationship. One should notify the supplier respectfully and ask him to replace it. A healthy balance maintained while taking steps against suppliers who are underperforming. A healthy balance manages underperforming suppliers.


Supplier training

If the supplier doesn’t understand, what the company wants its customers to experience through their products, he won’t be able to provide enough supplies. One should make sure that the supplier knows the company’s motto. They should be given appropriate training to ensure expectation levels.


The Need To Nurture

A healthy relation only nurtures when the two sides stay together for long.

Abandoning the suppliers at the time of success may create stress in a relationship. To avert this, one should include the supplier at every milestone and success celebration of a company.


Disharmony Amongst Buyer-Supplier Chain


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In a time without recognition and encouragement, the supplier becomes disloyal to an organization. Changing the supplier is not the solution here as it will consume more time and money. One can gain the loyalty of a supplier by encouraging him, or perhaps, offering incentives if possible.


Conflicts Over Contract

Signing a biased contract can be very unpleasant for the supplier. One should make sure that the contract has benefits for both the sides. A contract must be reviewed very carefully before it gets finalized.

Many organizations are now realizing the importance of Buyer-Supplier Relationship Management. Efforts have to made on a continuous basis to build harmonious Buyer-supplier relationships. SRM is a long-term approach to sustained success.

Invoicera is an Online Invoicing Tool that provides a host of features to effectively manage Buyer-Supplier Relationship :


  • Send and Schedule Invoices to the buyers on time.
  • Buyers can send purchase orders in a timely manner.
  • Suppliers can send in estimates for buyer approval.
  • In the case of a price settlement, the buyer can send inappropriate credit not.
  • The buyer can get a free log-in to access all invoices and account statements online.


Opt for Invoicera to manage your account payable and receivable effectively. Keep a record of all your finances and invoices together in a cloud-based accounting software.  FREE SIGN UP.


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Veronika Tondon is a business enthusiast with extensive experience in Invoicing & Payment Process. She has 6+ years of experience in Invoicera, the leading cloud-based invoicing solution as Invoicing Consultant. Sound knowledge in business process execution, offers end to end solutions for complete automation of business processes and AR/AP processes. Contact Veronica for your invoicing requirement.

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