Digging for Fire: Driving Suppliers to Up their Game

Sidonia Michoux

Emeryst Ltd

Business Consultant, Cost Reduction Consultant

In his book “Effective Negotiation” Dr. Chester Karrass wrote that Long Term Relationships are both good and bad for both parties in the relationship. He goes on to mention what issues can befall a partnership when the relationships are so ingrained in both organizations that both are suffering from this inattention to each other and do not realize that their relationship has lost its spark.

Dr. Karras proffers that changing the buying person who faces off to the supplier team can eliminate this automaton behavior. I agree with this approach. Additionally, organizations can also employ tactical Procurement/Buying Contractors bolster their in-house buying team. These outsiders can help your organization put complacent suppliers’ feet to the fire. It is understood that getting better costs/services is not a contact sport and should not be (too) adversarial, but sometimes using a different team or personalities to spice up the relationship can help both sides enormously.

I have been the new buyer a number of times and have ruffled some supplier feathers on a few occasions. I am sure this was not just directed at me and most people in procurement can relate to this fact. Suppliers, who have had an easy ride with the buying and the end user stakeholder teams, are often seen to run to their support base to get them to ask Procurement to back off. Procurement is “advised” to go easy on those suppliers who had access to the head of the organization or other powerful allies within the organization. Stakeholders who ask Procurement to go easy on these Suppliers should be questioned as to who they are working for: the supplier or their organization who pays their salaries? Also, if a supplier is going to run to complain when challenged, should they continue to be a supplier to our organization? If they are doing everything that they can not to deliver what is required, the bigger question is are they the right supplier for us for our future needs? Again, should they be our supply partner going forward?

Supplier & Stakeholder Management is a deeply psychological, yet fun, game and oftentimes require the Procurement professional to have combination personality traits of a Priest, Supplicant, Dictator, Blood Hound, Policeman and Best Friend. Procurement Professionals need all of these characteristics to drive the best from their Supply Chain and deliver on Procurement’s promises to their organization. Keeping the status quo, being complacent and allowing suppliers to not do their job are not an option in the competitive landscape.

Supplier Mannagement
Contract Management
Business Consultancy
Continuous Improvement
Supplier Negotiation

Sidonia Michoux

Emeryst Ltd

Business Consultant, Cost Reduction Consultant

We are a Global Procurement, Supply Chain and Business Consultancy specialising in Supplier Vetting and Management, Business Analytics, Business Interpretation and Translations, Contracts Management,…