Frank (Hurttefield):
Malcolm, in your article “The Procurement Conundrum” in a previous issue of Progressive Distributor, you pontificated on why salespeople need to be kept off the plant floor. Come on now, you can’t be serious? Are you saying the product expertise, the problem-solving skills and the troubleshooting abilities of today’s sales team aren’t valuable?

Distributor sales organizations today invest more time and money than ever before learning how to successfully apply their products. Many distributors employ product specialists who are walking encyclopedias of customer solutions. Are you saying keep them off the plant floor, too?

I know literally hundreds of salespeople who visit the actual people who make things happen — the guys responsible for keeping product flowing out the door and revenue coming into the coffers — with the idea of showing them new and better ways to get the job done.
So, Mr. Procurement Big Shot, how does this information get to them?

Malcolm (McMills):
Hmmm. Pontificated? Mr. Hurttefield, I swear you done swallered a dictionary or two of late. Frank, you bushwhacking Old Mountain hillbilly, if you keep this up you’re just going to hurt yourself treading on your own tongue. Anyway, your spittle just wet the powder on that decrepit musket of yours.

When sales folk sell directly to the floor, the first thing they are doing is circumventing the Purchasing Department. That’s poor planning — worse policy — and could be very hard on your good eye when it backfires on you. In the article, I was referring to the salesbilly varmint who cuts corners and sneaks in the back door when he knows it’s against company policy to do so. I was talking about the underhanded sleaze ball who snowballs the mechanic or anyone else who listens to his/her sales pitch and which results in an unauthorized purchase.

When this happens it screws up every department from Warehouse/Receiving, Quality and Incoming Inspection to Accounting and Procurement when it arrives.

Get your kin in the game, Frank. No one is arguing that many salespeople sent to visit plants are not ex- (or present) engineers or highly trained professionals. That’s not in dispute. What IS in dispute is the METHOD a few critter hunting salesbillies use in order to get in the door and on the floor.

But let’s back off a bit here cousin-in-law, because I think I’m actually beginning to sense a glimmer of hope for you here. You may not actually be as white lightning whacked as I first thought. Didn’t you say, “salespeople who visit the actual people who make things happen”? We seem to be having a breakthrough. Focus that good eye of yours and talk to me. And stop trying to dig your way under the fence. Walk around to the gate; I’ll have security let you in.

Frank (Hurttefield):
We both agree that we have to build value. And, it’s good to hear you understand that often the salespeople really are engineers and trained professionals. The truth is, some have 10, 15 and 20 years of experience identifying new technologies and offering suggestions for improving existing processes.

When we ask purchasing guys to help us understand the business — they go into a song and dance about building partnerships. They tell the sad story of customers who expect better quality for less money. I suggest to you they don’t understand the value of having more products, built with better quality coming out the door.

There should be a common ground here. You have stated time and time again that we have to work together to be competitive. Often, small issues have a way of being not passed along from plant floor to purchasing desk.

Malcolm (McMills):
You’re covering a lot of ground here, Frank. What say we go back to your first beef? (Or should I say pork?) You asked if salespeople didn’t recognize the solution to the problem. Well, now, many times they do. In fact, many times better than the customer does.

But sales technical reps really ought to know the solution to the problems, because if the purchasing guy called them, it was because the product the company sold them FAILED and they’ve already tried the obvious which won’t void the warranty. So, they better have the solution. And don’t tell me your people repair equipment they don’t sell. And if you sold them the cheap “crap” you are referring to, then they best learn to fix the cheap crap.

As for the common ground, yes buyers and sellers need each other, but with all of the competition out here, you aren’t the only fish in the stream. Here’s a thought for you. You spend a lot of money and effort promoting your customer’s products but how much are you spending promoting yourselves as professionals? It’s like promoting engine oil without any thought to the engine.

Frank (Hurttefield):
True, sometimes the things we sell fail. But, it is here that customer value kicks in. Let me share a true story of how this works. One salesman I know sold a number of motors to be used on a system in a food processing plant. After several months, a motor failed; then another one failed, and so on — all in rapid succession. By the time the third motor failed, the maintenance and purchasing departments were both mighty hot.

Our sales hero went in to investigate. The motor was installed correctly; the operation seemed to be working fine. He arranged for three no-charge replacements (he ate the expense) and continued to monitor the situation. It was on one of these “unauthorized” plant visits that he spoke to a member of the third-shift maintenance crew. During their discussion of the motor failure, it came out that the customer had begun using a weekly sanitation process. Pressurized steam was used in the whole department. The motors were especially susceptible to problems because they were not designed for high-pressure wash down.

Without this unauthorized detective work, it might have been years before the root cause was identified and fixed. It wasn’t a matter of “cheap crap.” These were great motors — they just weren’t designed for the high-pressure application.

Malcolm (McMills):
You’re making me sound like your broken gramophone, Frank. Read my lips, Mountain Buddy. That was NOT an unauthorized visit. That was an authorized visit. It was approved and it was cleared by security. It was by invitation.

It was also great work IF the motor supplier wasn’t originally asked to visit the environment first or to quote on wet environment application motors and switchgear. (It would be even greater leverage, by the way, if your friend had quoted on the more expensive weatherproof motor but the purchaser had opted for the dry conditions motor to save money.)

Myself, I’d want to know the original specs and type of motors the supplier replaced (if that was the case). But either way, this is the kind of information a distributor must include whenever you have the opportunity to expound on your added value to your customers. You can do it verbally when you follow up on an RFQ, include it in a quotation or drop it in casual conversation. Use your imagination. Mention it during negotiations with that supplier on any tough issue from that day forth.

So here’s another hot tip. Never allow a triumph to become ancient history until you have extracted every possible gram of residual value from the coup. (Just don’t be hurt or surprised when the customer at some point says, “What? You only did exactly what we expect of service reps. That’s why we buy from you.”) Whoosh. Instant deflation.

Next subject: Acquisition costs/partnerships. Notwithstanding the times when you actually do shine as a supplier, there may be a bigger reason why a customer may not want to pursue or continue a partnership relationship with you. (No, you still can’t crawl in under the fence.)

What if the total “acquisition” cost of doing business with your historically unreliable company is just way too high for the buyer? What if your company history leaves a bad taste in the purchaser’s mouth? All the product expertise in the world can’t erase past poor service, my possum-breathed friend.

You may be just too expensive to do business with. What did we call it in the last issue? Negative value? Well, maybe that’s you, big fella.

Lastly, of course there definitely are ways to mitigate these problems and work together. Many of them are listed in the book I wrote (and you claim to be saving up to buy.) I’ll trade you a copy for a couple quarts of BBQ sauce. No, I still haven’t seen your lost hog.

Frank (Hurttefield):
You make a good point on the acquisition costs. And, we all know the importance of receiving and transaction costs. But, the “turd in the punchbowl” is often purchasing guys are taught to block access. We want to provide information, service and products. The guy in the trenches wants our information. They want to know what’s new and innovative. And they often don’t have time to do the detailed research.

I am going to extend myself and ask the question, “How can we present our information and still keep the proper information flowing to purchasing?”

Malcolm (McMills):
First of all, let me tell you loud and clear in your good ear that the technical expertise provided by supplier reps is frequently essential. Really. The guys and gals definitely know their stuff and are pretty quick getting back to us when we call them. Unfortunately, that’s not the problem.

And you’ve definitely got to lay off the shine for a while because typically, purchasing folk are not taught to block access. Most purchasing people are just too darned busy to meet with everyone seeking an audience, no matter how good the product. Haven’t you noticed? Purchasing folk call YOU when they want something and are then more than willing to talk. Right?

On the other hand, when you have a new product that will improve on the old one, you want to sell it to that same customer. So listen up and I’ll tell you a trick. What do you do when your moonshine still isn’t running? You start backtracking along the equipment to find the problem. Well, you’ve got to do the same thing with your customer.

Many company policies designate the purchasing guy or gal to be the single point of contact between vendors and the company, which is fine in theory but the workload on the purchaser becomes staggering. There are too many vendors and too many products changing and improving along with everything else. But they still can’t let salespeople roam the plant at will because, besides everything else, it’s a security risk.

But listen. There’s nothing wrong with meeting with the appropriate engineers or plant forepersons by invitation if company policy allows it. Did you catch that? By invitation. That means you are invited. If you do your homework properly, just like troubleshooting your still, you’ll come to the proper person in the company to speak with. Do you folks do that? No. You try and sneak under the fence. Try asking the right person for an invitation. It may or may not be the purchasing person.

Frank (Hurttefield):
OK, I think we are starting to reach some kind of consensus here. If the engineer, maintenance person, or production person invites the salesperson in to talk about a problem or solution — all is fair. If the conversations (and subsequent research, demonstration, and refinements) turn into a sale — the purchasing guy will commit to buying the product from the person who did the work. Correct?

Malcolm (McMills):
Almost, Frank. If the engineer invites you, that’s fine, but if the maintenance person or the production worker invites you, a red flag should go up and you should very delicately confirm they have the authority to do so. In most plants, the floor or department manager must make that decision, in conjunction with the purchasing person, not the worker him/herself. There is a whole other set of rules for after-hours during emergencies; that’s a different scenario, we’re talking dayshifts here.

It’s like getting a fire permit before you burn. It doesn’t cost anything and it saves a whole lot of worry.

Frank (Hurttefield):
OK, so here I am talking to the maintenance foreman. Our discussion turns to the problem of fixing a machine with broken bolts. When a bolt breaks it takes an extra 30 minutes to make the repair. I immediately recognize this as an application for a new tool. It costs more, but it eliminates the wasted time. I commit to training the maintenance crew on the proper use of this wonder tool.

In this scenario, everybody lives happily ever after. I get the sale — at a premium. The maintenance men get fewer skinned knuckles, and your company gets the extra production. That sounds like the way things should work to me.

So, Malcolm, with that thought, I want to challenge you. Can you give me 10 rules a purchasing guy could sit down with a hard-nosed purchasing guy and review for good plant access?

Malcolm (McMills):
I’d rather give you seven suggestions. Your guys can think of three more if you want.

1) If you hear of a customer undergoing corporate type changes, don’t hesitate. It’s diligence on your part to phone, e-mail or snail-mail past contacts for updated information. See if they’re still there. Do they have the same job? What’s the new policy? If they schedule an appointment with you, all is fair.

2) Before you call, look up the customer’s Web sites and other publications. There is exhaustive information on company Web sites, industry forums, and in the public record. If you find a contact name that suits your product or service, see if an appointment is possible. Remember the purchasing rep. Don’t crawl under the fence.

3) Approach procurement with research information. Run a report of purchases made and analyze the data for trends. It is always reasonable to expect that purchasing will direct you to the source for answers to those trends. Note: we are not talking about “lack of sales volume” questions. Instead, see if there are plant environmental trends that may be up your alley. You may wind up selling equipment to fix a problem they are experiencing.

4) Know your own company’s strengths and let the customer know it. Most distributors have a flagship product or service. We expect that you will keep our people current on developments in that product. If there is training or updates available for your equipment, advise purchasing of the value, benefits (and cost) of this. A word to the wise; do not use bait and switch tactics if you expect to keep your reputation with procurement.

5) Promote your company successes (also be able to prove it). For salespeople, this should go without saying. But the truth is many times customers hear all about product and not much about what you have done to improve process, output or profitability. Start with procurement but also work it into conversations with the other contacts you deal with. Good news filters through the plant to the right places in time. If your story is a good one, tell it.

6) Look for future opportunities to demo, train and promote your products in a facility. Once you are in, ask for places you can demonstrate your value. Nothing speaks louder than offering to help make a product (already sold) more valuable. And, this opens the door to other contacts and potential sales. Offer a freebie sometimes.

7) Be professional and give the purchasing rep an overview of all of your activities on their turf. Nothing says you care more than a quick overview of the issues and solutions you are working on for the contacts you already have within the plant. Don’t risk losing that hard-earned invitation.

Frank (Hurttefield):
Malcolm, I guess deep down under that toothless, shotgun-carrying exterior, you ain’t such a bad guy. Does this mean we are through feuding?

Malcolm (McMills):
Nope. Now get out of my office, off my plant floor and don’t go near that fence. Oh, and try and keep your powder dry. You’ll be needing it.

This article originally appeared in the September/October 2007 issue of Progressive Distributor. Copyright 2007.

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