Supplier Information - Getting An Advantage
I’m going to let you into a few secrets to get supplier / vendor information that can get you some great wins.
The thing is, even if your key sales contact is the most honest in the business, they aren’t always informed about some key details of their business.
It’s not their intention to keep you in the dark, but often, there’s a disconnect between the information that the company shares publicly and the information given to or known by your sales rep.
I’m all for internal alignment of messaging (especially within the business for whom I’m working), but in this case, misalignment is an opportunity for Procurement to exploit.
Companies are increasingly clamouring to be transparent. If they’re listed on a stock market they’re compelled to at least provide regular financial updates to their shareholders.
There’s also an urgency to get good news out into the world, on new product developments, gains in market share or instances of supplier cooperation.
Some or none of which may be shared by your sales rep.
Here’s where I recommend you hunt for information that COULD give you the competitive edge.
1. Earnings calls – if your supplier is a listed company, they’ll need to publish their quarterly earnings, usually accompanied by a presentation or web call for investors. These are a fantastic source of information, primarily around financial developments which can give indications on pricing and risk.
2. Shareholder presentations – these can show a surprising level of transparency, such as market share, changes in strategic direction, margin growth, new product categories and more.
3. Corporate website – many large companies have a “supplier area” on their websites, including standard terms and conditions for trading with them. Have a good look at their T’s and C’s and identify whether their terms with their suppliers are less favourable than YOUR terms with the them. You can then make a logical argument for them to improve your contract terms.
4. Internal supplier publications – use your time wisely when you’re waiting in reception on a supplier visit, read their internal literature. You might be surprised what you might find – celebrations of efficiency improvement activities, leadtime reductions or even a new lower-cost contract manufacturing partner that you knew nothing about!
Some examples from my career, none of which was disclosed by my sales rep:
- Finding out about a serious cashflow issue which allowed to me put the business continuity plan into action earlier than if I’d waited for the account manager to tell me.
- A 33% reduction on machinery-build lead time offered to another customer. I demanded a similar lead time and the supplier had to agree.
- Payment terms to their suppliers that were longer than I had with my supplier, and limitation of liability that were far higher! I was able to harmonise terms.
- An efficiency activity that led to the supplier achieving a 10% cost reduction while they were pursuing an above inflation increase with my business, one of their main and longest-standing customers. I was able to get the supplier to remove their price increase.
So my message to you is, do some sleuth work, dig around for multiple sources of supplier information that might just give you the upper hand in your negotiations.
