[et_pb_section fb_built=”1″ _builder_version=”4.16″ da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.23″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” width=”100%” custom_padding=”||0px||false|false” locked=”off” global_colors_info=”{}”][et_pb_column type=”1_3″ module_class=”table-contents” _builder_version=”4.23″ background_color=”#f3f2f6″ custom_padding=”25px||25px||true|false” sticky_position=”top” sticky_limit_bottom=”section” sticky_position_tablet=”top” sticky_position_phone=”none” sticky_position_last_edited=”on|desktop” border_radii=”on|24px|24px|24px|24px” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.23″ text_font=”||||||||” global_colors_info=”{}” background__hover_enabled=”on|desktop”][\/et_pb_text][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Intro” _builder_version=”4.27.6″ header_2_font_size=”32px” custom_margin=”||0px|||” header_2_font_size_tablet=”30px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet” global_colors_info=”{}”]<\/p>\n
Suppliers and vendors are the support network of your business. Whether it\u2019s coffee beans for a cafe, crucial machine parts, or the printer toner delivery guy, they help you provide service to your customers. But if those vendor\/supplier relationships get set up without the attention they deserve, it can accidentally hurt your business through supply chain disruptions, unmet project deadlines, or failed deliveries. Essentially, the opposite of what you want for you and your customers!<\/p>\n
But having good relationships with your suppliers and vendors doesn\u2019t require a complete system overhaul. Setting expectations, establishing basic agreements, and prioritising partners go a long way toward building stronger, more productive relationships. Let\u2019s dive in.<\/p>\n
Before you start building relationships with them, it\u2019s good to know the difference between a supplier and a vendor. While sometimes they are interchangeable, individually, they provide different services.<\/p>\n
Both suppliers and vendors provide something your business needs to function, at varying levels of importance.<\/p>\n
Typically, your relationships with your suppliers and vendors will follow a \u201clife cycle\u201d that looks like the following:<\/p>\n
Here are the most common mistakes to avoid when choosing the right supplier or vendor for your small business.<\/p>\n
[\/et_pb_text][et_pb_image src=”https:\/\/www.reckon.com\/au\/wp-content\/uploads\/2026\/04\/Supplier-Vendor-retlationship-pitfalls-2.png” alt=”IMage with four emojis, money, clouds, language censor, and sleeping” title_text=”Supplier & Vendor Retlationship Pitfalls 2″ align=”center” _builder_version=”4.27.6″ _module_preset=”default” custom_padding=”30px||||false|false” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.6″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
This is a common pitfall for small businesses and customers alike! Low prices seem like a great deal \u2014 until something goes wrong, and you find out why the cost was so low. So consider carefully when choosing suppliers and vendors based on price, because there could be hidden risks involved in using cheaply (i.e. poorly) made products or services.<\/p>\n
Here is a quick \u201chow to choose\u201d checklist when considering price:<\/p>\n
A functional relationship depends on knowing your roles and how you work together. You have defined expectations on how your relationship works. Not having expectations leads to assumptions, which means you’re not on the same page with your vendors and suppliers. When a problem occurs, it takes twice as long to solve because you first have to establish what the problem actually is.<\/p>\n
Instead of guessing, discuss with your suppliers and vendors what matters to you in your partnership. Look at scope (what\u2019s involved), timing (urgency of deliverables), quality (effort and standards), and communication (best point of contact).<\/p>\n
Make sure to have clear, defined communication rules with your critical suppliers, since if you can\u2019t contact them \u2014 or they can\u2019t contact you \u2014 chasing missed deliveries or replacing faulty products becomes nearly impossible.<\/p>\n
Set up a protocol that you and the other party can agree on. Look at low-priority communication (email), medium-priority communication (office phone contact with any staff member), and high-priority communication (direct contact with the owner\/responsible staff member).<\/p>\n
Many businesses make the mistake of sticking with suppliers and vendors they’ve outgrown. Usually, this is because of the short-term pain of leaving, familiarity, personal attachment, or the cost of switching providers. But if it can\u2019t meet your needs or give passable service, the supplier or vendor could actually hurt your business.<\/p>\n
That’s why it\u2019s important to remove personal feelings and move on, or \u201cbreak up\u201d with suppliers and vendors when it suits your business. Don\u2019t get stuck with bad service, terms that no longer fit, and auto-renewals. Instead, get proactive and act before the renewal date\/notice period.<\/p>\n
Not every supplier or vendor will have the same level of importance to your business \u2014 so you shouldn\u2019t treat them the same, either. Instead, prioritise your vendors and suppliers by listing them as:<\/p>\n
When you sort your suppliers into these groups, you elevate essential relationships and set goals for each that make sense for your business. For example, putting the communication needs of your major supplier over an occasional contractor is basic prioritisation.<\/p>\n
When choosing which priority your supplier or vendor fits into, ask yourself a few questions:<\/p>\n
These will help create a solid list of your suppliers and vendors. If you’re unsure about risk exposure, consider what could happen to your business if they shut down or delivered faulty products or services, and prepare a backup plan.<\/p>\n
Once you\u2019ve mapped out your priority list, set the tone for your relationship with each vendor and supplier. Your critical suppliers are almost like business partners: draw up agreements that build long-term partnerships and include service standards, pricing, lead times, minimum order quantities, and paths for governance when disputes arise.<\/p>\n
You can achieve this by creating minimum viable agreements that cover:<\/p>\n
Proactive relationship management, not reactive, is the key here, so when problems do occur, you have a structure to follow to solve them quickly.<\/p>\n
After you\u2019ve built them, check in with your supplier and vendor relationships by doing yearly performance reviews.<\/p>\n
Start with your own internal review to assess whether the supplier still meets your current business needs, has reasonable prices, and is easy to work with. Metrics like KPIs<\/a> can guide discussions in this step.<\/p>\n Next, touch base with your supplier or vendor with an external review, and create an external review plan based on their priority level. For instance, you could set monthly or weekly meetings with critical suppliers for regular business updates. Here, it may be wise to assign a staff member to \u201cown\u201d (be responsible for) certain aspects of the relationship with a critical supplier. For owner-operators, you\u2019ll need to handle this responsibility yourself.<\/p>\n Partnerships are only as good as the terms that underpin them. While small businesses don\u2019t always operate with in-depth contracts, they can create an easy framework to by:<\/p>\n Getting the most out of your partnerships helps your company thrive and grow. A great supplier and vendor management system favours collaboration over transactions \u2014 which builds a stronger, more resilient business.<\/p>\n [\/et_pb_text][ba_social_share icon_bg=”#03002e” icon_padding=”10px|12px|10px|12px|true|true” layout=”classic” show_text=”off” btn_padding=”0px|0px|0px|0px|false|false” btn_bg_color=”RGBA(255,255,255,0)” _builder_version=”4.23″ _module_preset=”default” custom_margin=”50px||||false|false” custom_padding=”25px||||false|false” custom_css_before=” content: %22SHARE THIS%22;|| font-size: 16px;|| font-weight: 700;|| line-height: 22px;|| letter-spacing: 0em;|| text-align: center;|| color: #ff5447;|| margin-bottom: 10px;|| display: inline-flex;|| position: absolute;|| margin-top: 10px;” border_width_top_main=”1px” border_color_top_main=”#e4e4e4″ border_radii_icon=”on|5px|5px|5px|5px” global_colors_info=”{}” custom_css_before_last_edited=”off|desktop”][ba_social_share_child _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][ba_social_share_child network_type=”facebook” _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][ba_social_share_child network_type=”linkedin” _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][ba_social_share_child network_type=”email” _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][\/ba_social_share][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" A practical supplier and vendor management guide for small businesses. Avoid common mistakes, set clear expectations, and build reliable partnerships.<\/p>\n","protected":false},"author":36,"featured_media":303180,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":" Changes to how casual employees can transition to permanent employment are coming this year. The new process adds an employee-driven element, where, depending on certain circumstances, a casual employee can notify their employer of their intention to move from casual to permanent employment.<\/p> This is a marked departure from the previous rules, which were entirely up to the employers. So, what does this new process look like, and what does it mean for small businesses?<\/p> Let\u2019s go through it.<\/p> The \u201cClosing Loopholes\u201d amendment has directly changed how casual employees remain casual or transition to permanent employment.<\/p> Under the old rules in the National Employment Standard, a casual employee\u2019s employment status was entirely employer-driven. This meant that any conversation or initiation of a casual employee was through the employer's agreement or arrangement.<\/p> Now, employees can let their employer know their desire to change their working status, called the employee choice pathway.<\/p> Under the employee choice pathway, casual employees can pursue permanent employment by notifying their employers of their intent to change from casual to permanent. The following criteria have to be met before notice can be given:<\/p> The changes have been in effect for medium-large businesses since 26 February 2025. Under the legislation, businesses with 15 or more employees must follow the employee choice pathway procedure.<\/p> The changes will come into effect on 26 August 2025 for small businesses (15 employees or fewer). Under the rules of casual employment, an employee may only notify their intent for permanent employment if they have been employed for more than 12 months.<\/p> The employee choice pathway is twofold: a notice of intent to transition from casual to permanent, and the response to that notice. While this may seem simple, a number of factors determine the outcome. First, before a notice can be made to move from casual to permanent, we must look at what defines casual employment status.<\/p> The legal definition of what constitutes casual employment can be found in the Fairwork Act 2009 (15A). This is a rather large document, so for all intents and purposes, casual employment can be simply defined like this:<\/p> If you are unsure about the definition of casual employment<\/a>, the Fairwork Ombudsman has materials and resources.<\/p> The notice a casual employee gives to their employer about moving to permanent employment requires two factors to be satisfied:<\/p> Here is an example of a notice to demonstrate what this would look like in the workplace.<\/p> Imagine a bartender working casually for over 10 months at a large pub with more than 15 workers. This casual employee has been given more responsibilities in the last few months, including rostering other casuals. The employee has also noticed they work fixed, regular, rostered shifts. With this information and a desire for more security in their employment, they approach their employer with notice to transition from casual to permanent employment.<\/em><\/p><\/blockquote> In this example, the employee meets the requirements to give notice and pursue the casual choice pathway. After notice occurs, the employer is required to respond. Let\u2019s take a look.<\/p> Once an employer receives a notice from their employee, they have 21 days to respond. Before a response is made, the employer should consult with the employee about what changes the transition would make to their employment. This discussion should include:<\/p> After a consultation, the employer can accept or reject the notice of employment change.<\/p> When accepting a change, the employer needs to include what has been consulted previously and provide a new written employment agreement with their employee. The changes must immediately be implemented after the acceptance of employment status unless the employer and employee have agreed on a different commencement date.<\/p> When it comes to rejecting a notice, employers need a good reason. An employer can justify a rejection of the notice when either of the following circumstances apply:<\/p> Accepting or rejecting an employee's notice must be thoughtfully considered, whatever the circumstances, and communication should be clear and concise. If there is a disagreement, it may come down to both sides not effectively communicating. However, dispute resolution procedures are in place if the relationship is beyond solving in the workplace. It also should be noted that protections are in place<\/a> against any adverse actions taken in reaction to an employee submitting a notice.<\/p> Any dispute must be resolved first in the workplace. However, if a dispute occurs due to a disagreement about an employee\u2019s employment status, there are a number of avenues that can be explored:<\/p> Unfortunately, if either of these doesn\u2019t remedy the situation, the matter may have to be resolved in court, arbitrated by the Federal Circuit Court.<\/p> As the changes on the pathway from casual to permanent employment are new, there will be a degree of awkwardness in implementation. What is essential is good communication and honesty when discussing an employee's future in your business. As the date for small businesses to follow the new rules is set for 26 August 2025, there is plenty of time to review your procedures for managing your staff<\/a>.<\/p> You may find that the new process has new opportunities for dedicated employees<\/a> to commit fully to your business. Whatever the employee choice pathway brings, ensure you are prepared with proper payroll systems<\/a> to navigate the changing landscape.<\/p>","_et_gb_content_width":"","inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[343],"tags":[],"class_list":["post-303176","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights"],"yoast_head":"\nHow to jump-start your supplier\/vendor management<\/h2>\n
\n
Key changes to casual employment rights<\/h2>
Who is affected by the employee choice pathway?<\/h2>
The process involved<\/h2>
Defining casual employment<\/h3>
Giving notice of employment change<\/h3>
Responding to a notice<\/h3>
Accepting or rejecting an employment change notice from an employee<\/h3>
What happens if there is an employment dispute?<\/h2>
The bottom line<\/h2>