A bakery in Kimironko had one flour supplier. When that supplier had a stock issue for two weeks, the bakery couldnât produce. Two weeks without bread. Customers went elsewhere. Some didnât come back.
One supplier = one point of failure. Hereâs how to avoid that.
Rule 1: Never depend on a single supplier
For any critical input, have at least two suppliers. The primary handles 70â80% of your needs. The backup handles the rest or stands ready. When (not if) your primary fails, you have a fallback.
Rule 2: Track everything
Keep records of:
- What you ordered, when, and at what price
- Delivery dates â were they on time?
- Quality â did you have to reject or return anything?
- Payment terms â whatâs the credit period?
A simple spreadsheet works. Review it quarterly. Patterns emerge: this supplier is always late, that oneâs quality has been slipping, this one consistently delivers. Act on the patterns.
Rule 3: Negotiate with data
When you have three months of order history, you can negotiate from strength:
- âIâve been ordering RWF 2M/month from you consistently â what volume discount can you offer?â
- âIâve had three late deliveries this quarter. Can we agree on a penalty clause for late delivery?â
- âIâm considering splitting my orders with another supplier. What would keep me consolidated with you?â
Rule 4: Pay on time (or use terms strategically)
Pay your suppliers on time and theyâll prioritise you during shortages. But donât pay early unless thereâs a discount â cash flow matters.
Negotiate 30-day terms if possible. This gives you breathing room between receiving goods and paying for them â critical for cash flow management.
Rule 5: Build relationships, not just transactions
In Rwandaâs business culture, relationships matter enormously. Know your suppliers personally. Visit their operations. Understand their challenges. When youâre more than just an order number, you get better service, advance warning of price changes, and priority treatment during shortages.
Track your suppliers and orders using a business dashboard or even a dedicated tab in your accounting spreadsheet. The businesses that manage their supply chain proactively are the ones that never have to tell a customer âsorry, weâre out of stock.â