When it comes to supplier selection processes either for new customers or expansions for your current customers the bottom line is that companies ought to act, no better must act like it is a beauty contest. In a lot of cases and based on years of analysis they, unfortunately, do not…

Regular supplier behavior (in most cases) with regard to existing client expansions:

In most companies, it is all about mindset and considerations with regard to the existing client base, common behavior of most suppliers:

– We already are engaged with the customer they love us, as such no need to walk the extra mile;
– We have sold the initial project to get a relation, once the relationship is established we skim the price to creating the margin we need and want (mostly driven from shareholder perspective);
– Why bother? They do not have an alternative, the purchase order will follow automatically.

The result?

– Overconfidence of the supplier
– Moderate performance
– No clear understanding of the customer needs and wants
– Laziness of the supplier

From our and my personal perspective the above mentioned will never work and will result in less competitive advantage, low employee satisfaction, and low customer satisfaction.

Do you really love and are you really interested in your existing or new customer?

This means continuous preparation, dedication, and (personal) sacrifices. Are you ready and is your organization ready (company-wide) to run the extra mile, not once but continuously?
This also implies mindset and the mindset begins at the board – C level and the policies – objectives they actively pursue.
The following questions are interesting to consider:
A: Is it all about profit margin?
B: is it all about maximizing the company profit and hence your personal bonus?
C: is it all about optimizing short-term financials driven by shareholders either publicly listed companies or driven from private equity?
At Group 2000 and personal we believe not.

The following list is also interesting to consider”

A: it is all about long term engagements
B: it is all about trust, transparency, and trustworthiness
C: it is all about continuous performance.
D: it is all about engagement of all stakeholders in the process
E: it is all about understanding the customer needs
F: it is all about spending more time, attention, communication, and continuous alignment to keep up with the customer processes and needs.

As such, do you really understand the customer? Are you engaged with all stakeholders in the process? Are all employees including senior management prepared to sacrifice, bring and give what is absolutely necessary? Do you continue your efforts even if this will increase your costs where other companies stop?  Do you act as a trustworthy advisor/consultant not afraid to deviate from the customer request and provide alternatives even if they are or might be out of bounce? (creative thinking).

We are open and happy to tell you more if interested.


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