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Which is better - Quietly quit using a supplier or tell supplier?
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Which is better - Quietly quit using a supplier or tell supplier?
Which is better - Quietly quit using a supplier or tell supplier?
Which is better - Quietly quit using a supplier or tell supplier?
Which is better - Quietly quit using a supplier or tell supplier?
Which is better - Quietly quit using a supplier or tell supplier?
Which is better - Quietly quit using a supplier or tell supplier?
Which is better - Quietly quit using a supplier or tell supplier?
Which is better - Quietly quit using a supplier or tell supplier?
Which is better - Quietly quit using a supplier or tell supplier?
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  Post Number #9  
Old 15th May 2018, 09:56 PM
Golfman25

 
 
Total Posts: 1,373
Re: Which is better - Quietly quit using a supplier or tell supplier?

Quote:
In Reply to Parent Post by outdoorsNW View Post


As to leaving some work with the supplier, we have internal disagreement. Several people (including myself) want everything moved, but others disagree. Legacy parts would stay but new parts will go elsewhere.The argument is the incumbent supplier is capable of mid-range routine work but not difficult work that requires non-standard production methods.(Although the non-standard methods are not difficult and not expensive.) Sales are way up, so moving parts with no problems is not worth the time, according to some.

Other than this part and its close cousin, the two most difficult parts with the supplier, we have had few problems.

The supplier may be glad to loose this part because it has been a repeated headache for them.
This is important information. Fact is you have given the supplier something outside his wheelhouse. Sounds like he's good at making nuts, but can't make bolts very well. It's beyond his expertise and a change is needed. That's perfectly fine and reasonable. If the guy is honest with himself he'll realize he's doing more harm than good and may even help with the transition. Let him do what he does best. Absolutely no reason to make it hostile. Good luck.
Thank You to Golfman25 for your informative Post and/or Attachment!

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  Post Number #10  
Old 16th May 2018, 04:45 PM
outdoorsNW

 
 
Total Posts: 28
Re: Which is better - Quietly quit using a supplier or tell supplier?

Wes, I have always appreciated your insight.

Being a small fish is part of the problem. My guess is we are 0.3% to 0.8% of the supplierís revenue.We have started a project to consolidate suppliers, but that is a topic for another time.

I think we are overall a good customer to our suppliers. I know I am lucky to work for a company that does not expect me to squeeze our suppliers and blame them for everything.Having worked for the other side until recently, I try to treat the supplier the same way I wanted to be treated in my previous job.

We sell to the high end of the market and quality is usually more important than a few dollars cheaper.

Usual terms are net 30. I think we pay on time, except when a supplier ignores a request for return, does not meaningfully respond to several notifications, and the supplier fails to explain why they think the problem is not their fault.

Suppliers are notified of small problems, and are expected to fix the problem, but we only issue SCARs for big problems. Before sending a SCAR, I ask the buyer for a copy of what was sent to the supplier and verify the requirement was communicated to the supplier.

Shipments are not sent back until after the supplier is notified and has a chance to have questions answered, say we messed up, etc. We are good about admitting our mistakes and eating the cost.I donít recall ever hearing about us sending something back without a supplier RMA.
  Post Number #11  
Old 16th May 2018, 05:02 PM
Wes Bucey's Avatar
Wes Bucey

 
 
Total Posts: 11,151
Re: Which is better - Quietly quit using a supplier or tell supplier?

Quote:
In Reply to Parent Post by outdoorsNW View Post

Wes, I have always appreciated your insight.

Being a small fish is part of the problem. My guess is we are 0.3% to 0.8% of the supplierís revenue.We have started a project to consolidate suppliers, but that is a topic for another time.

I think we are overall a good customer to our suppliers. I know I am lucky to work for a company that does not expect me to squeeze our suppliers and blame them for everything.Having worked for the other side until recently, I try to treat the supplier the same way I wanted to be treated in my previous job.

We sell to the high end of the market and quality is usually more important than a few dollars cheaper.

Usual terms are net 30. I think we pay on time, except when a supplier ignores a request for return, does not meaningfully respond to several notifications, and the supplier fails to explain why they think the problem is not their fault.

Suppliers are notified of small problems, and are expected to fix the problem, but we only issue SCARs for big problems. Before sending a SCAR, I ask the buyer for a copy of what was sent to the supplier and verify the requirement was communicated to the supplier.

Shipments are not sent back until after the supplier is notified and has a chance to have questions answered, say we messed up, etc. We are good about admitting our mistakes and eating the cost.I donít recall ever hearing about us sending something back without a supplier RMA.
Good to learn! We Demingites devoutly desire that more companies would adopt such an attitude.


In essence, the open secret to good supplier/buyer relations is making BOTH parties feel (and act like) they are partners in satisfying the end customer.


Some hardnosed folks still living and thinking back in the early 20th century think of many Demingites as too "touchy feely" when the truth is that supply chains which take a holistic approach where each link is "part of a whole" rather than a stand-alone fiefdom are ultimately more profitable than those which take an adversarial approach in dealing with the links above and below them in the chain.


I shudder to recall how many automotive OEMs badgered and bullied the links in their supply chains which allowed overseas competitors to come in and eat their lunch. Ultimately, it became plain to prospective customers that some automotive OEMs didn't care much about their retail customer (similarly to the lower links on the other side of the supply chain) other than whether the check cleared.



In hindsight, is it really so hard to believe that the customer would go where he was apparently respected and wanted?
  Post Number #12  
Old 17th May 2018, 07:55 AM
Mike S.

 
 
Total Posts: 2,231
Re: Which is better - Quietly quit using a supplier or tell supplier?

Quote:
In Reply to Parent Post by Wes Bucey View Post


In essence, the open secret to good supplier/buyer relations is making BOTH parties feel (and act like) they are partners in satisfying the end customer.
This is very important, no question. Starting off with the adversarial approach is just asking for trouble. Much like a marriage, there needs to be forgiveness, fairness, give and take, and lots of communication.

But, like marriage, sometimes ya just gotta sever ties. Some companies change and become awful suppliers. But like others have said, be SURE you have a good alternate supplier before jumping. My policy is do not tell or terminate the bad supplier unless and until you are sure (via repeated deliveries from the new supplier) you don't need them or unless you have a solid 3rd supplier. Even then, I prefer to just stop giving new orders and not make a big deal out of telling the bad supplier. Someday they may be needed, and they may improve.

I recently had a supplier who went from good to bad to awful over a few years. We tried everything to help, to make it work, it just never got better. We spent tons of $ bringing on a 2nd source. Turns out they were worse than the 1st supplier!
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