KAM Strategy: Analyzing Your Key Account Portfolio

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Strategies To Strengthen Your Key Account Relationships

Are You A ‘Preferred Supplier’?

If you can tick most or all of the boxes shown in the diagram you are ‘a preferred supplier’.

Becoming ‘a preferred supplier’ is an important progression in the direction of becoming more important to the customer. It is where the supplier begins to stand-apart from the competition, becoming the buyer’s preferred choice on the basis of product/service quality and overall value.

The ‘preferred supplier’ has strong and strengthening interpersonal relationships with good rapport, increased openness and a high level of trust. The supplier generally knows a lot about the customer’s business and can be highly responsive as a result. It has demonstrated its commitment to the customer organization.

The ‘preferred supplier’ is a low risk choice – it is comfortable and familiar. But the question is – who prefers the supplier? Is it a manager or a particular buyer, or is it more widespread across the buying organisation?

Every manager has their favorite supplier. In the face of trends such as the consolidation of suppliers and the centralization of procurement the preference of one manager may not be enough. Becoming institutionalized as the ‘preferred supplier’ is important. This happens when the use of a short list of preferred, or approved vendors becomes mandatory throughout the organization.

To be officially recognized as the preferred choice, the supplier must have a proven track record of delivering on time and to the highest quality standards, as well as good customer service or support. It then competes on a mix of price and value.