SUPPLIERS

– One of the Most Important Aspects of Your Business

SYNOPSIS IN POINT FORM

• Suppliers are an important extension to your business
• Your business is as good as your weakest supplier
• A professional selection process must be conducted
• Check out their references and other clients thoroughly
• Ask for samples, trials, tests and other convincing evidence
• Never conceal any expectation, only to slip it in later deviously
• Always treat them as equals, never as inferiors
• Never be afraid to speak out firmly, but never condescendingly or rudely
• Always respect your terms of agreement
• Treat them in exactly the same way you would like your clients to treat you

FULL ARTICLE

Professional people should be capable of selecting and sourcing competent and trustworthy suppliers. It is part of any executive’s work, to ensure that all suppliers who are engaged are at least as good as your own company or business, and preferable even better, as automatically they will improve and uplift yours.

You are as good as your weakest supplier, as your own products and services are always one way or another the result of what you acquire from your own suppliers.

How they are selected therefore, is of crucial importance. And before you start screaming how inefficient and unreliable everyone else is, you would do better to have a good look at your own operation.

If you have often been let down by suppliers in many different ways, then this mainly reflects badly on yourself, for either you have been selecting the wrong ones or you haven’t been handling them properly. This is why some clients are very happy with their suppliers and some are not. You also often hear two different clients talking about the same supplier, one in a positive light and the other in a negative.

The negative ones usually boast that they have very high standards and only expect the very best, while in reality these are often the ones with low interpersonal, communication and management skills, who have difficulty advising and handling their suppliers accordingly.

The higher your expected level, the higher and the more competent you should be, not your suppliers. You should always ensure that you have conducted a rigorous selection process, by truly getting to know your suppliers, rather than simply snatching up the first who replies. Don’t TELL them what you want, but ASK them what they can do.

Here are some typical questions which make a lot of sense to ask :
– Can you show me some real examples/samples of what you do
– Can I have some references from past and present clients
– What are your strong and weak points
– What do you enjoy most and least producing/offering
– What are your levels in qualitative and quantitative terms
– How long does it take you to reply to enquiries
– How long does it take you to turn around an order
– How flexible are you
– How do you handle problems, disputes, refunds, cancelations, returns
– What is your pricing structure and payment policies
– What are your general terms and conditions

This is how suppliers should be handled and not simply telling them what you require and what you expect, in which case all they have to do is repeat the words “yes, no problem” to everything you say.

So do your homework wisely. If you have heard from them what you wanted to hear, and not because you unwittingly told them yourself what you wanted, then follow it up by really checking out their past work and products, to really ask their current and past clients.

Do not be afraid to ask for samples, trials and other tests which may help you come to your final conclusions. As long as you are always asking nicely and not demanding, then a genuine person should be able to oblige, or if not, they will calmly explain to you why they cannot.

If and when you decide to engage a supplier, then it is tantamount to your mutual success that you put all your cards on the table and leave nothing hidden for later. If you plan to conceal some of the bad news until later, you are very simply giving them every reason to start lowering their service towards you as soon as this is revealed.

Nobody is stupid – do not underestimate people. Rather than trying to cheat them into giving you more, try to negotiate intelligently, or charm them accordingly, or use pity, or whatever other technique you are personally good at, but do not try to cheat them into giving you more than you agreed to. This is a very shortsighted way of doing business which always leads to disappointment.

You want your pound of flesh – but no more and no less. If you keep on stretching it, you know that the inevitable outcome is breaking it.

Once you are up and running with a supplier, it is always imperative to treat them as the professional experts that they are. Do not treat them like your inferiors, simply because they are not. Do not talk down to them, because this only puts you down in their eyes. You do not need to be harsh, sarcastic, condescending or too demanding with them. If you are not nice to them, they will not commit suicide if you leave them and replace them, they will probably throw a party.

You need to be polite, even friendly, while also being to the point, clear and firm whenever necessary – there is a very big difference. If there is a problem you have to make it clear that you expect a quick solution, in a firm and neutral way. Do not be afraid to speak up loud and clear and to repeat this as often as needed to get the job properly done, but without sounding rude, sarcastic or patronising.

As always, you will receive the same attitude and level of respect back from people that you extend to them. If things have really gone wrong, then do not threaten them on replacing them, simply advise them that they are making conditions very hard for you to continue.

A few practical hints which always help are :
– Consider them as your full partners and collaborators
– Always put down all agreements in writing
– Try to acknowledge and thank their every communication. Do not be crass by asking them to quote and then not even replying
– Do not put undue pressure on them unless it is absolutely necessary
– If you are always late and disorganised, then you need to change your own methods and time management, not your suppliers’
– respect the conditions which were agreed between you
– Do not call constant meetings for matters which may be easily resolved over the phone or via email
– It is always good to have your suppliers purchase back from you, in an ‘I scratch your back and you scratch mine’ sort of way, but don’t make this sound obligatory, unless thus agreed beforehand
– Unless your supplier in this case is a major bank, do not expect them to finance your business, so pay them on time. If your word regarding payment is worthless, then so are all the other words you have ever told them

But most importantly of all, if you have followed all of the above and still your suppliers let you down, then just change them without a moment’s hesitation and source much better ones. Your suppliers will make you or break you, so never allow them to bring you down.