For years you purchase from the same supplier! WHY!!!!!
Today’s post is from our archives at SafeSourcing Inc.
For years you purchase from the same supplier, expect the same product level, anticipate some price increases due to market changes. You think you know what you are ordering; however, when you want to take your product out to test the market prices from other suppliers is when you realize you have not been purchasing what you thought you were.
In procurement we see this often whether it be elastomer requirements in an O-ring or broiler chickens. History has told us that elastomers are critical to the function of mechanics, as we lost the Space Shuttle Challenger in 1986 due to an O-ring failure. There are over 24 synthetic rubber and thermoplastics that make up O-rings and over 8,000 different sizes. Does your product require heat and freezing variables? Does your product require a specific lubricant that is EPDM compliant?
In another example, recently a client wanted to test the market for their diced chicken needs. They provided their current product specifications and pricing and quickly found out that the major manufacturers could not meet the client’s needs. Why? Because the client thoughts they were getting broiler chickens from their current supplier and they were receiving fowl chickens. Fowl chickens are the older chickens that can no longer produce eggs and the meat is considered by some to be a tougher meat. Needless to say, this was a big awakening for the client and they needed to re-evaluate their needs for their product manufacturing.
Are you sure you are purchasing exactly what your specifications require? Are you testing your suppliers products to ensure quality, quantity, safety expectations are met? Are you paying a fair price for your product needs? If you answered no to any of these questions, SafeSourcing can assist you in exploring your procurement solutions for your business or on our “Risk Free” trial program for RFPs and RFQs, please contact a SafeSourcing Customer Service Representative. We have an entire customer services team waiting to assist you today.
We look forward to your comments.