Friday, September 13, 2013

Watch Your Suppliers

Recently, my business suffered from a string of complains with one of our cabinets. Through a series of investigation and conversation, we learned that the complains tend to focus on the same company that supplies the cabinet.

We selected this supplier was based upon its willingness to experiment and learn. Our investigation shows that they are only able to do small scale project. As the project scope increases, their resources are stretched to the point where they are not able to maintain consistency with the product qualities.

Being the contractor, we could have taken the easy way out by cutting off this supplier.  Rather we have decided to continue working with this supplier with smaller scale project and probably other products. Before taking any drastic actions, we have to ask ourselves why we pick this supplier from the first place. If the supplier are able to hold on to the value where we first selected them, we believe in second chance. Moreover, we all make mistakes. If both of us can learn from it, it only strengthen our working relationship and improve we can offer to our customers.

To many, they may not agree to what we are doing now. Especially in a business environment where perceived to be no loyalties and honor. As for now, we are not willing to cut him lose, unless not yet.

We want to:
  • Grow together with the supplier. Come up with the best product that we can offer, at the most reasonable price. 
  • Leverage from the supplier's expertise and network.
  • Built a portfolio of good suppliers where we are able to quickly gather resources and take action should any good opportunity arises.

The quality of work/ services that you can provide to your customer has a direct correlation with the supplier's quality. Therefore, hang on to your suppliers and treat them with care.