Communicating openly with suppliers is a key to high quality e-procurement events.

April 2nd, 2015

During my recent travels on customer business a passenger in the seat next to me asked what I was reading.

 

Todays post is by Ronald D. Southard, CEO at SafeSourcing Inc.

We’ve all known for a while that our seat partners look over our shoulders to see who we are and what we do. I told him I was reading an Aberdeen business brief and who and what they do. I went on to explain that our company was focused on the use of  e-procurement tools for or customers. He introduced himself as a private business owner with his two brothers and that he had experience biding in reverse auctions with these tools.

We discussed SafeSourcing’s offerings and ultimately came around to what made e-procurement events successful for his company in the past as a prospective supplier and what would encourage them to participate again even if they did not happen to be awarded the business in a particular event. His take was that this was initially an educational process for their company and ultimately would become a way to do old things in a new way. He also suggested the following

1. Openly communicate with prospective suppliers
2. Make sure they understand everything and comfortable
3. Make sure they have no open questions.

With that as an understanding I offer the following list of sample questions one might consider when inviting a supplier as a new participant.

1. Does the supplier understand that there is no cost to them to participate?
2. Do they understand they will be trained at know charge?
3. Do they understand event timing and requirements?
4. Does the supplier understand the terms being used and how they apply to an e-procurement event such as? In fact, do they understand what a reverse or forward auction is?
a. Reserve Price
b. Proxy Volumes
c. Low Quote
d. Proxy quote
e. Funds
f. Terms
g. Notes
h. Extensions
i. Matching quotes
j. Event  rules
k. Product specifications
l. Samples
m. Award of business

At the heart of it, it comes down to something we all know but don’t always practice and as such negatively impacts the sustainability of processes that just make good sense. And that is that the supplier is your customer too and the customer comes first and should be treated the way you would like to be treated.

If you’d like to learn more about SafeSourcing’s  quality approach to supplier management during the eProcurement process and why our satisfaction rating is 99.999% with our vendor participants, please contact a SafeSourcing Project Manager

We look forward to and appreciate your  comments.

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