18 Ways Prospective Suppliers Spook Buyers

When Is It Too Scary To Award Business To A New Supplier?

PurchTips Edition #387

By Charles Dominick, SPSM, SPSM2, SPSM3

Halloween is near – a time when it’s easy to be spooked by macabre imagery that seems to be everywhere. In procurement, we can be spooked all year long by certain prospective suppliers trying to win our business.

It’s good to be spooked by certain suppliers. Selecting the wrong supplier can lead to horrifying results for our organizations.  Here are some characteristics of prospective suppliers that should spook you:

Don’t miss updates on Procurement & Supply Chain, Subscribe here!

  1. No experience supplying the product or service you are sourcing
  2. Unprofitable or declining performance on their financial statements
  3. Unwillingness to provide financial statements at all for transactions that are critical to you and big to the supplier
  4. An imminently-expiring union contract
  5. Lack of contingency plans
  6. Location in natural disaster-prone regions
  7. Anomalies or omissions in proposals and/or specifications
  8. A pricing structure that is significantly and illogically lower than the rest of the market
  9. Lack of internal performance metrics
  10. A sample that doesn’t comply with your specifications
  11. Reference checks that do not go well
  12. High employee turnover
  13. Unresponsiveness or inability to complete tasks on-time during the sales/sourcing process
  14. Bad publicity
  15. Negative word-of-mouth
  16. An “F” rating with the Better Business Bureau
  17. New management
  18. A downsized workforce

Want a More Rewarding Procurement Career?


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

Earning your SPSM® Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM® Certification Infopack today to learn how to get started on your journey to a more rewarding procurement career!

Download

Learn More About Procurement Talent Management


Want to know all the details behind world-class procurement talent management? Simply download the NLPA’s new whitepaper, “Procurement Talent Management: How To Recruit, Train & Retain a Modern & Awesome Buying Team.”

You’ll learn the two current approaches to procurement recruiting, how to use the SPSM-BOK® Mastery Model to plan procurement training, and five powerful retention techniques. If you’re a leader attempting a procurement transformation, you must read this whitepaper!

Download


final

Want to get more procurement articles by email for free?

Members of the NLPA get great articles just like this by email every two weeks. As a member, you will also get access to:

And the best part is that membership in the NLPA is Free! Sign up today and you'll receive a username and password that will allow you to access all of the benefits that come with the NLPA membership.


Copyright 2017. This article is the property of the Next Level Purchasing Association and may not be copied or republished in any form without the express written consent of the Next Level Purchasing Association. Click here to request republishing permission.

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