Is the customer always right? Personally, I strongly disagree.

[Sam]

Our main customer is pressuring us to sign a two year LTA which would require that we give a 5% discount every time our approval rating dips below 95% (such as on time performance) and if our PPM goes above 2,000 that is another 5% discount rate for the entire year. We have a niche in the business and the volume of parts they purchase is so low that one nonconformance could set us back for the year. Our quality is great, I am concerned about the on time delivery. We deliver the parts on time and they stamp the packing list with a received date and by:, we keep that document, our parts sit on the receiving doc for a couple of days and is received into their computer when they get around to it. Which makes our parts late in their eyes. What to do, what to do? They have no physical record that the parts arrived on time! We do. We would like them to revise the contract but I don't think that is going to happen. If we sign it, and our quality rating takes a dive because of the issues I have stated above, then I feel my only choice is to issue corrective action requests to my customer.
We have talked this over and over with our buyer, he said it is not his job and does'nt know or care who's it is! Any suggestions are greatly appreciated.
Paula

Main customer with a low purchase volume? It's Christmas; tell them to shop around.

 

[Scott Catron]

Re: Is the customer always right?

Got one today I just had to share:

Date on a C of A: 1/02/04

Date on corresponding C of C: 1/2/04

Customer complains. We had to change date on C of C to 'match' C of A. They haven't explained to us what material difference it makes if there's a zero in front of the day or not.

This really steams me, we have bigger fish to fry with this customer, but this sort of minutia keeps getting in the way. They've never specified a date format they would prefer, now we're being threatened with a "vendor performance issue". Whatever.

Just had to vent.

 

[Raptorwild]

Re: Is the customer always right?

Got one today I just had to share:

Date on a C of A: 1/02/04

Date on corresponding C of C: 1/2/04

Customer complains. We had to change date on C of C to 'match' C of A. They haven't explained to us what material difference it makes if there's a zero in front of the day or not.

This really steams me, we have bigger fish to fry with this customer, but this sort of minutia keeps getting in the way. They've never specified a date format they would prefer, now we're being threatened with a "vendor performance issue". Whatever.

Just had to vent.

Vent Away!
We signed the LTA and were told because of the low volume of sales the 5% issue would not pertain to us... time will tell!
Paula

 

[David Hartman]

Re: Is the customer always right?

Raptorwild & Scott,

Just a thought, but have you ever taken these "minutia" type issues to your customer's senior management? After attempting to deal with their Buyers and their Quality people, if you still have no resolution to the problems take it up with their senior management (President, CEO, etc.).

Let their senior management know of the types of trivialities her/his people are spending their time on (and in Raptorwild's case how effecient and effective the dock workers and receiving department are).

You may see a change.

 

[Wes Bucey]

Re: Is the customer always right?

Vent Away!
We signed the LTA and were told because of the low volume of sales the 5% issue would not pertain to us... time will tell!
Paula

:ca: "told"?? Just send the person who told you that a memo and ask him/her to acknowledge it in writing "for your audit team who are very persnickity about details."

(well, slightly off topic) Over the years, we've FIRED several "prestigious" but "high maintenance" customers. When we did a hard-nosed cost analysis, the extra time spent hand-holding and brown nosing translated into zero profit.

MarkTwain supposedly quoted a fellow being tarred and feathered and run out of town on a rail:
"If it weren't for the honor of the thing, I'd just as soon leave without ceremony!" Ever feel like that with some customers?

 

[Raptorwild]

Re: Is the customer always right?

Raptorwild & Scott,

Let their senior management know of the types of trivialities her/his people are spending their time on (and in Raptorwild's case how effecient and effective the dock workers and receiving department are).

You may see a change.

Good Idea! I will look into that...
Paula

 

[Scott Catron]

Re: Is the customer always right?

Raptorwild & Scott,

Just a thought, but have you ever taken these "minutia" type issues to your customer's senior management?

Be assured, we're working on that.

We beginning to think we're caught in the middle of an internal struggle between the customer's management and the production people who are upset that the business they used to do in-house has been out-sourced to us. Looks like the inspectors are trying to cause trouble for us. We've been accommodating with every little persnickety request in the past, but it's getting silly now.

It's good to talk about these things. I was really boiling over this earlier. It just galls me what a waste of time all this is when there are larger issues to address.

 

[Mike S.]

Re: Is the customer always right?

Got one today I just had to share:

Date on a C of A: 1/02/04

Date on corresponding C of C: 1/2/04

Customer complains. We had to change date on C of C to 'match' C of A. They haven't explained to us what material difference it makes if there's a zero in front of the day or not.

This really steams me, we have bigger fish to fry with this customer, but this sort of minutia keeps getting in the way. They've never specified a date format they would prefer, now we're being threatened with a "vendor performance issue". Whatever.

Just had to vent.

Sounds like a Dilbert cartoon. What idiots. FWIW I would fire (or at least write-up) any one of my people who wasted their time and yours on such a stupid issue. I agree wit the idea of taking it to the Top Dogs in the customer's organization. He/she may want to know.

 

[The Taz!]

Got one today I just had to share:

Date on a C of A: 1/02/04

Date on corresponding C of C: 1/2/04

Customer complains. We had to change date on C of C to 'match' C of A. They haven't explained to us what material difference it makes if there's a zero in front of the day or not.

This really steams me, we have bigger fish to fry with this customer, but this sort of minutia keeps getting in the way. They've never specified a date format they would prefer, now we're being threatened with a "vendor performance issue". Whatever.

Just had to vent.

I have found after many years dealing with the Big Guys (Big 3) that everyone in their organizations are primarily jockeying for position or hanging on to retirement.

The former need to make their mark. . . the latter don't want any hassles.

I have always followed the direction of "help your customer and you help yourself".

With the position changes that go on up there, especially in the Supplier Quality arena, people are put into positions that have histories with suppliers. The newbie needs to review the past to manage the present. This is not always done.

In the automotive world, the Golden Rule of automotive has been, and is, "He who has the gold makes the rules. . . if you want some, you play by their rules." Autocratic and tyranical. . . absolutely.

How about charging suppliers for the reporting software. . . a new profit center???

Enough venting. . .

 

[mshell]

I would contact the customer and explain the issue. You would think that there are more important issues to deal with. We received a report card from one of our suppliers last week and it indicated that we were late on 2 shipments in 2003 which reduced our on-time delivery rating from 100% to 98%. Due to the fact that we are never late, I contacted the customer and requested details for both shipments. Upon receiving the requested information, I investigated the 2 shipments and found that the customer had made a mistake. I then informed my contact of the findings and he issued a new report card with the correct rating.


So the customer is not ALWAYS right.