Thursday, 26 September 2013

Trust –the defining business requisite


 
As economic conditions remain tough more than ever the question of trust is of paramount importance.
 
Operating margins are being squeezed and people are looking for ways to protect their bottom lines. As we witnessed earlier this year with the furore over horse meat contamination in “Beef products” there will always be those who disregard regulations or flout the law in the belief that they will get away with it.
 
At the time a government minister stated "People should have absolute confidence in what they are buying. The responsibility for that lies with the retailers, who need to be absolutely sure that what they're selling is what they think it is."
 
It boils down to the integrity of the supplier, no matter how many factory audits are conducted or how many QA questionnaires are completed it is essentially an issue of trust and reliability.
 
The same can be said of the Buyer, if goods are delivered on a credit basis this should mean that the Supplier has every right to expect that the agreed settlement terms are adhered to.
A good relationship / reputation takes time and effort to build and sustain, once damaged it is hard sometimes impossible to restore.
In the words of Warren Buffet Warren Buffett - "It takes 20 years to build a reputation and five minutes to ruin it. If you think about that you'll do things differently."
 

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