Top 10 Challenges faced in Buyer Supplier Relationship Management

Buyer-Supplier Relationship Management (SRM) is the most neglected term in today’s business.  Delivering a high-quality product and having a reliable customer base is crucial to gain a competitive edge in business. The number of errors in the system may result in undesirable outcomes. The source of error could-be-anything.  Understand and rectify to a problem to its exact necessity.

Buyer supplier relationship management

Suppliers play a crucial role in any company’s success. A buyer-supplier relationship management to manage the organization in the long run.

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 a healthy relationship.

Refer to: How to Double Up Business Productivity in 3 Months

Understanding The Culture

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

Lack of Communication

Communication is absolutely necessary for many aspects of 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 effectively by using 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 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: Supplier 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 under-performing. A healthy balance manages under-performing suppliers.

Training Suppliers

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.

challenges buyer supplier management

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.


In 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.

Contract Conflicts

Signing a biased contract can be very unpleasant for the supplier. One should make sure that the contract has benefits for the 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 one such tool that provides a host of features and benefits for buyer-supplier relationship management:

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

Opt for the appropriate collaboration software for management of B2B communication cycle. FREE SIGN UP


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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