It is part of a Purchasing Professionals job to know how and when to engage with Suppliers. With limited time and resources it is important to have a framework in place regarding how and when to meet with current and new suppliers. Purchasing Leaders need to train staff and make sure that people with sufficient experience are involved with supplier meetings. The suggestions are admittedly aligned with Western corporate practice at public companies however have relevance for professionals working in other areas and organizations.
Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
When and How to Meet with Suppliers: A Fundamental Purchasing Skill
1. WHEN AND HOW TO MEET WITH
SUPPLIERS
A Fundamental Purchasing Skill
Bill Kohnen Purchasing Fundamental Discussion Series 2014
2. Summary
• When and how to meet with new and current suppliers is
a key skill for purchasing professionals.
• With limited time and resources it is important to have a
framework in place regarding how and when to meet with
current and new suppliers.
• Benefits of a good process are: lower cost, risk reduction,
faster time to market, service and quality improvement,
and access to new technology.
Bill Kohnen Purchasing Fundamental Discussion Series 2014
3. Framework Based on Category/Item
Importance
Not Urgent for the Buyer
• Taking time to meet with these
suppliers can result in preferred
pricing and service
Occasional Meetings at
Buyer Site
Important
• Contacts Cross Functional Areas
and Levels
• Facilitate Discussions
• Manage Cadence and Levels of
Meetings
• Schedule may be included in
specification and/or policy
Alternate Buyer and
Supplier Sites
Lowest Priority
• Automate
• Eliminate Bottlenecks
• Efficiency
Conference Calls, WebEx,
Skype
Highest Priority
• Must Seek Out Salespeople
• Create Interest from Supplier
• Find Alternate Suppliers
• Find Substitute Items
Go to Supplier Sites
Importance to Buyer
Spend, Risk, Technology, Reputation
ImportancetoSupplier
Spend,Risk,Technology,Reputation
High
High
Low
4. Detailed Questions to Decide If You Should Meet With Potential
New Suppliers and Goal of Meeting
Question Yes No Goal of Meeting
Do we have a
source?
√
Qualify Source
Immediately
Is Current Source
Performing well?
√
Evaluating
Options
Are there multiple
sources used? √
Determine level
of risk and
evaluate options
Is the product or
service something
we use or will
use?
√
Benchmarking
Do we have
resources to
change suppliers
now?
√
Perhaps
meeting
to gather info
5. Preparation and Meeting
• If you agree to meet: be prepared and professional
• It is a reflection of your company
• It is a reflection of your personal professionalism
• For all meetings follow basic business etiquette
• Start on time
• Be a good host or visitor
• Do not multitask during meeting
• Be honest
• Follow up on any actions agreed to
• Adjust time and topics based on importance
• Create a Standard Supplier Overview Presentation to Facilitate
Discussions and make Preparation Easier
6. Discussion For most Meetings
• Introductions
• Overview of Buyer Company
• Overview of Potential Suppliers Company
• If a current Supplier: Review of Performance
• Discussion of Specific Opportunities
• Decide if there is a need for further discussion
• Agree to action Items and Next Steps
For a Non Critical Item this could be a 5 Minute Call
For a Face to Face Meeting Schedule a hour
For a Strategic Item it could be a Full Day Meeting
7. Specific Tips During Meeting
• As a Buyer keep your overview short and get your specific
requirements stated early and clearly
• Give more time to Supplier to talk and focus on their discussion
to learn from the direct presentation and more subtle Cues
• Be honest and clear about interest
• A Fast and Clear No saves everyone time if that is the case
• If there is interest set action plan and stick to it
• For more Strategic requirements including meals and
appropriate business entertainmen tare important. Remember
though even in a more casual environment it is still business.
8. Conclusion
• It is part of a Purchasing Professionals job to know how and
when to engage with Suppliers
• Given limited resources it is important to optimize time spent
with suppliers and have specific goals in mind for the meeting
• Everything that happens as part of the meeting sends as
message including meeting location, preparation of
participants, basic business etiquette and follow up after the
meeting.
• Purchasing Leaders need to train staff and make sure that
people with sufficient experience are involved with supplier
meetings.
Bill Kohnen Purchasing Fundamental Discussion Series 2014