When we talk about growing a distribution company, we usually focus on the customers making sure we have the technology managing our inventory and getting our supplies from the right places. These things are all important for running a business. But there’s one more underestimated quality that is important for long-term success.
While preparing for the episode featuring Jason Seger, the CEO of Border States, I thought he would talk about being a good leader using technology and growing the company.
However, something he chose to highlight was about the company’s relationship with its suppliers.
“We simply can’t do what we intend to do without them,” he said.
The best distribution companies do not see vendors as people they buy things from. They see them as partners who help them deliver value to the customers.
Managing Vendor Relationships is More Than Buying Things
Managing vendor relationships is more than buying requirements. Managing vendor relationships is more than just about getting the best price, signing contracts or placing orders.
The companies that do well understand that every relationship with a vendor affects the customers and in turn how well the business does. A normal vendor relationship means the work gets done. A great vendor relationship means having a partner through your business journey.
(I should know: we at DCKAP have been lucky to work with many such businesses).Â
That is why successful companies spend time building relationships with their vendors or just managing orders. It is a long-term investment that pays off as the business grows.
Trust and Transparency in Vendor Partnerships
Trust is really important for business relationships.
Jason talked about how he wants vendors to feel like they are part of the company’s journey. He said that Border States shares its vision with vendors so they know where the company is going. This openness creates trust.
When there is trust, conversations are more productive; vendors share ideas and they work together to solve problems. It is a kind of relationship rather than just negotiating prices.
Impact on Customers and Operations
Customers notice the difference when companies have relationships with their vendors. They may not see the meetings and planning sessions. They definitely notice when products arrive on time, inventory is available, and questions get answered quickly. These things happen when distributors and vendors work together.
When they communicate well inventory is more accurate, product information is better and problems get solved faster. The customer may not know the exact reasons why everything worked smoothly, but they will remember that the company did what it promised. Bonus points if they do more.
Strong Partnerships in Difficult Times
Good partnerships are really important when things get tough. It is easy to have relationships when everything is going well. But when things get tough like when supplies are hard to get, shipping is delayed or the economy is uncertain companies that have invested in their relationships with vendors are better able to handle it.
They already have communication, respect and a willingness to work together. Good partnerships do not make problems go away. They make it easier to solve them.
Technology Enables, Relationships Drive Success
Technology can help relationships. It cannot replace them. The distribution industry is changing with technology like automated systems, artificial intelligence and better inventory management. These things can make it easier to work with vendors. But they do not build relationships.
People build relationships. Technology can make it easier to share information. Relationships make people want to share it. Successful companies use technology to make their relationships stronger, not to replace human connection.
Accountability in Vendor Partnerships
Accountability is important in relationships. Jason said that having a partnership does not mean lowering expectations. Healthy relationships include conversations. Distributors should expect vendors to do their best and vendors should expect the same from distributors.
This kind of accountability makes things better over time instead of just blaming each other. Jason said, “We [at Border States] try to make it a collaborative partnership.” This collaboration allows both companies to grow together by just working on their own.
Culture Shapes Every Relationship
The way a company is led affects all its relationships. The culture of a company does not just stop at the office door. It affects how employees interact with customers, vendors and other business partners. If leaders treat vendors like partners, that mindset spreads throughout the company.
Employees become more collaborative and communication gets better. Relationships get stronger over time. I have seen this in many of the conversations I have had with leaders on the Driven by DCKAP podcast. The companies with the cultures often treat everyone with respect including customers, technology partners and vendors.
This creates trust throughout the business and beyond.
Final Thoughts
The distribution industry has always been about relationships. Technology will keep changing, customers will keep expecting more. Markets will get more competitive.
But one thing will always be the same: businesses grow faster when people trust each other. Managing vendor relationships is not about buying products or getting the best price. It is about creating partnerships that make the supply chain stronger, improve customer experiences, encourage ideas and support long-term growth.
Jason’s insights really stayed with me — great distributors do not succeed on their own, they succeed because they build relationships with partners who believe in the goals.
