PurchTips - Edition # 39

 

This is the Web-based version of this article. Click here for the printer-friendly version.
* More Purchasing Articles

Picture of Charles Dominick, SPSM, SPSM2, SPSM3

Autopsies of Dead Supplier Relationships

By Charles Dominick, SPSM, SPSM2, SPSM3

How Can You Avoid Killing Promising Relationships?

It's been said many times: "Good supplier performance equals good purchasing performance." Therefore, for you to achieve the good purchasing performance to which you aspire, you need to foster positive, productive supplier relationships. When supplier relationships fail, purchasing performance suffers. Let's look at a few reasons that supplier relationships falter so that you may avoid negative impacts on purchasing performance.

Unclear expectations. Sometimes the performance that the buyer expects is different than the performance that the supplier understands to be required. As a result, the buyer feels that the supplier is incompetent and the supplier feels that the buyer is overly demanding. To avoid this situation, clearly define, write, and discuss your expectations with the supplier. Tell the supplier what constitutes good performance (e.g., 99% of shipments delivered on the due date on the purchase orders) as well as what constitutes bad performance (e.g., failure to return calls within four hours).

Opportunistic behavior. There is a certain amount of trust involved in a collaborative buyer-supplier relationship. When one party seeks to take advantage of the other's problems (e.g., a supplier charging a large expediting fee for emergency orders or a buyer negotiating a discount every time there is a minor blemish on a product), that trust is broken. The parties will lose their interest in committing themselves toward helping each other succeed. While contributing to the bottom line should always be a priority of yours, be careful not to contribute at the expense of a valuable relationship that would facilitate good purchasing performance and competitive advantage for years.

Poor selection methodology. Sometimes a supplier's performance is simply inexcusable. Don't pass the buck and blame the "incompetent" supplier. Take responsibility for not being thorough in qualifying that supplier for your business. Many instances of poor supplier performance could have been avoided if a solid supplier qualification methodology was used. Look for ways to make your supplier selection process more reliable in the future. If you are buying critical goods and services based on price alone, it's time to change before a key supplier relationship becomes a casualty.

(keep reading for a FREE Offer)

Spotlight On Professional Development Opportunities

SPSM Certification

Are you tired of not getting enough opportunities, respect, and money out of your purchasing career? Well, guess what? Nothing will change unless you take action towards becoming a world-class purchasing professional.

You see, today's employers refuse to reward employees for yesterday's skills.They demand that purchasing professionals like you use the most modern skills and achieve unprecedented results. They want you to save more money, achieve better operational performance, and reduce risk.

Is lacking a purchasing certification keeping you from getting the results, opportunities, respect, and money that you want out of your career? Today's employers refuse to reward employees for yesterday's skills. They want you to save more money, achieve better operational performance, and reduce risk. They demand that purchasing professionals like you achieve unprecedented results and without the most modern skills that can be a challenging feat!

So how can you acquire the most modern skills, achieve meaningful results, and convincingly prove your capabilities to today's employers? There is an impressive purchasing certification program that will teach you what you need to accomplish all of this and more. It is the SPSM® Certification, earned by completing the Senior Professional in Supply Management® Program. And you could earn it in less than a year - maybe even much less than a year!

Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is the action to take if you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSM® Certification (and perhaps get an iPad) (with the option of getting a Study Guide on an iPad) at:

Distinguishing yourself as an achiever in purchasing is key to sustaining a rewarding career, even in these difficult economic times. Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is to take if you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSM® Certification (and perhaps get an iPad) at:

Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is the action to take if you want to bring the most modern purchasing practices  into your organization and achieve your career potential. And if you sign up for the Senior Professional in Supply Management® Program on or before May 31, 2008, SPSMSM Certification Program on or before 4/30/2007, you also get these and other bonuses valued at over $700:

  • FREE $30 gift certificate to Amazon.com!
  • FREE CD-ROM with printer-friendly versions of the class materials!
  • FREE Purchasing Performance Measurement spreadsheet template!
  • FREE audio CD about purchasing job security!

To learn how to earn your SPSM® Certification and get these valuable bonuses, visit:

Earning your Senior Professional in Supply Management® (SPSM) Certification is the action to takeif you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSMSM Certification at:

Learn how to earn your SPSM® Certification at:

www.NextLevelPurchasing.com/spsm.html



FREE Offer!!!

There are four irreversible business and technology trends that are likely to cost purchasers like you their jobs in the next 12 months. Do you know what they are? Do you know how to protect yourself from their effects? If not, you should get your FREE report entitled "Career Survival In Supply Management."

"Career Survival In Supply Management" describes these four trends and how they are steadily decreasing the number of purchasing jobs in today's volatile global economy. It then gives you a seven-step process to stay in the game under the new rules. If you want to remain in the purchasing profession for years to come, you owe it to yourself to check out this report!

To get your FREE copy of

"Career Survival In Supply Management,"

follow the instructions at
www.NextLevelPurchasing.com/purchasing-report.html.


Free Procurement Training & Certification Starter Kit

This Starter Kit gives procurement professionals like you a clear idea on what it will take to become certified. You'll get an excellent feel for what you will need to learn and how long it will take.

Click here to learn more

Included in your free Starter Kit:

  • Access to two lessons from courses that are part of the Senior Professional in Supply Management® Program
  • A Certification & Training Planning Template
  • Case studies
  • A free Basic Membership in the NLPA

Together, these materials will help you decide how well the SPSM® Certification can help you achieve your career goals.

So, what are you waiting for? Begin your pursuit of a more rewarding procurement career – get your Procurement Training & Certification Starter Kit now by signing up for a free NLPA Basic Membership!

If you are already a member of the NLPA, click here to login and visit the "Starter Kit" tab to access these resources.