Your customers are saying, “Get to know me!”

by Ed Rigsbee

It was at their first-ever vendor summit of about 75 very successful companies, hosted by a large holding corporation. Mr. Big, the CEO, is speaking from the lectern to the audience of several hundred suppliers and he says, “Please, get to know us!”

His entire talk centered around this idea. He said to the vendors, in many different ways, “Please, get to know us!” 

Why would such a large, successful and privately held organization put so much energy into simply saying, “Please, get to know us!” to its vendors? 

Because it wants to grow bigger and be more profitable. That is what world-class organizations do: get better.

What about your organization?
An interesting question for any business leader to ask of his organization is: “How well do our venders know our culture, our mission, and our vision?” If your vendors do understand and embrace your culture, mission and vision, they can be an unstoppable force in helping you to get where you desire to go. This serves the vendors too, as the better you do, the more you’ll buy from them.

If your vendors do not have a crystal-clear understanding of the above, the next logical question to ask is, “What’s blocking them?” The answer could be as simple as: They do not want to be your partner in success. Or, the answer could be as complex as: Your organization is vendor-hostile.

More than likely, the issue is not that your vendors don’t want to partner, but rather how you perceive and treat your vendors. If you want to move away from a vendor-hostile culture, you’ll have to first ask how your organization rewards the procurement people. 

If they are rewarded based on getting another 5-cent/5-percent discount, you are rewarding the wrong thing. To move away from vendor-hostile and toward vendor partnering, you must reward the total success of the buyer/seller partnering relationship.

What can you do to help your vendors see/enjoy the value of developing high-level partnering relationships with your company?

Explore the following:
• Express trust in your vendors through both word and deed.
• Communicate frequently your current and anticipated longer-term needs.
• Include your vendors in strategic planning and brainstorming sessions.
• Regularly drive the vendor-friendly paradigm into the hearts of your employees, managers and executives.
• Consider entering into long-term contractual relationships with your stellar vendors.
• Rather than squeeze your vendors for concessions, help them cut costs from products and the supply chain.

I know of no businesses that prosper without the help, assistance and support of their vendors. 

Back to Mr. Big
I was invited to present the opening keynote at the vendor summit. Interviewing Mr. Big weeks before the summit, he mentioned to me that he wanted me to challenge both the vendors and his people alike. He also wanted me to instruct them in new and innovative reasons for building alliance relationships.

As I took the stage at this summit, I could sense the tension and apprehension in the room. The vendors were braced for a keynoter to tell them why it was in their best interest to give bigger discounts and partner with the holding corporation and its 75-plus units.

Instead, they received a presentation in which the mirror was placed close to both the sellers' and buyers' behaviors. Following the presentation, there were a number of comments from the vendors about the balanced presentation.

What has always been clear to me is this: Treat them fair and with integrity, and your vendors will bend over backward to try to help you. I’d like to suggest you adopt the following mantra for the New Year: In 2003; my vendors will be helpful to me.

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