Fifteen Ways Great Suppliers Help You Win By Laura Juarez The word partnership has become an empty marketing
term in business today. Suppliers promise it, but typically have no plan to deliver it. Thus, customers have become suspicious both of the word and of anyone touting it in a scripted sales pitch.
And yet, the essence of a true partnership is a significant profit opportunity. I contend high performing supplier
partnerships grounded in trust and innovative thinking
are truly one of the fastest ways to improve both top and bottom line performance. They provide value you can
Figure 1 – This Sample Suppliers Grade Card allows you to set up a simple method to determine which supplier will be most effective for your company’s needs.
monetize for both your business and your supplier to create a win/win relationship.
And yet for a myriad of reasons, suppliers throw this
word around nonchalantly — failing to understand that the word demands excellence, creativity and taking an
authentic vested interest in the customer’s success as a company. And as a result, customers shop suppliers looking for line item price improvements and reward
purchasing professionals for micro improvements in cost of goods sold.
So where’s the win/win? The profit injection? The sales infusion? It’s there … it just requires a different
conversation. Instead of jockeying for one more penny
or 15 more days to pay, customers have the opportunity to collaborate with partners to leverage supplier
capabilities, reach, capital, brand and lead generation tools. Instead of negotiating new delivery fees and
hassling clients about warranty and return policies,
suppliers have the opportunity to roll out lead generation programs that are measurable and share the return of e-marketing efforts with their clients.
Is there a time and place to shop a supplier? Absolutely. Sometimes, a supplier is simply underperforming or
charging more than its product and added value are
Figure 2 – There are numerous factors to consider when comparing suppliers, and you worth. In these cases, executing a switch is a shot in the must weigh the most important items to make a proper comparison. profit arm. However, often companies switch suppliers
based on price and fail to calculate the true cost of the
grass, it is worth evaluating the true cost of
business and know your team’s
bigger losses happen elsewhere in the P&L.
following 15 areas. When measuring,
have many. They care about your business
switch. While cost of goods sold (COGS) improves,
In situations where you have a strong supplier but are contemplating a change based on price or greener
6 • Buyers’ Guide 2017-18 • International Surface Fabricators Association
the switch by measuring each of the monetize the items if possible.
1. Great suppliers understand your
idiosyncrasies. And believe me, we all and your people. 2. Great suppliers have your back. They