How to get suppliers cooperate with you if you are not an A-customer?
Post 1 of 9
Hi everybody!
My company is located in China. Due to quality issues, a lot of raw material and steel parts need to be imported from Europe for processing in China. There's no alternative to single sourcing from Europe. However, sometimes the deliveries from Europe have quality problems. The Chinese companies often need more than their announced lead time to finish the processing because they sometimes have to fix quality problems for me (at least they pretend this is the reason for the delay; in fact, I presume there could be other reasons). They say that they're already working as fast as possible given their limited resources in terms of technological equipment, plant space and manforce. Unfortunately I am in neither case among the A-customers of my processors (you can also call them suppliers), and I won't be able to increase demand quantity significantly in the near future.
To cut it short: How can I exert influence or pressure on my Chinese processors despite being only a customer of minor importance? I am willing to provide technological support, or do whatever is necessary to contribute to supplier development. What I want is higher willingness to perform my order and thus decrease processing time (I want them to even shorten their lead time despite having to fix problems) without harming quality. I could also try to apply a supplier relationship management approach. But if it's true that they are working as fast as their current technology allows, a better relationship would have no added-value, either. What do you suggest?
My company is located in China. Due to quality issues, a lot of raw material and steel parts need to be imported from Europe for processing in China. There's no alternative to single sourcing from Europe. However, sometimes the deliveries from Europe have quality problems. The Chinese companies often need more than their announced lead time to finish the processing because they sometimes have to fix quality problems for me (at least they pretend this is the reason for the delay; in fact, I presume there could be other reasons). They say that they're already working as fast as possible given their limited resources in terms of technological equipment, plant space and manforce. Unfortunately I am in neither case among the A-customers of my processors (you can also call them suppliers), and I won't be able to increase demand quantity significantly in the near future.
To cut it short: How can I exert influence or pressure on my Chinese processors despite being only a customer of minor importance? I am willing to provide technological support, or do whatever is necessary to contribute to supplier development. What I want is higher willingness to perform my order and thus decrease processing time (I want them to even shorten their lead time despite having to fix problems) without harming quality. I could also try to apply a supplier relationship management approach. But if it's true that they are working as fast as their current technology allows, a better relationship would have no added-value, either. What do you suggest?
11 Sep 2007 01:10
Post 2 of 9
Replying to [GentleSoft]:
How does a poor girl attract the attention of a boy? By putting herself in the best perspective! You have to do the same.
Somehow you have to create in your supplier the feeling that it would be good for him to help you develop. That could be your plans of expension you might hint to him, the mentioning of "tricky" customers you can't attend right now due to the uncertainty of supply, etc.
Be a businessman, be resourceful!
How does a poor girl attract the attention of a boy? By putting herself in the best perspective! You have to do the same.
Somehow you have to create in your supplier the feeling that it would be good for him to help you develop. That could be your plans of expension you might hint to him, the mentioning of "tricky" customers you can't attend right now due to the uncertainty of supply, etc.
Be a businessman, be resourceful!
11 Sep 2007 09:31
Post 3 of 9
Replying to [GentleSoft]:
Is this the only supplier you can find? I think I would maybe start looking for a different/new supplier.
Is this the only supplier you can find? I think I would maybe start looking for a different/new supplier.
13 Sep 2007 01:54
Post 5 of 9
Replying to [GentleSoft]:make yourself stronger will win more respect and attention! ![[em1]](http://img.alibaba.com/images/eng/style/icon/emoticons_smile.gif)
It is my opinion! But of course, I will give all of my customer same attention, and do my best to meet thier requirement!
It is my opinion! But of course, I will give all of my customer same attention, and do my best to meet thier requirement!
15 Sep 2007 00:31
Post 6 of 9
Replying to [Ada Dong]:
This is not the first time that I see a Chinese forum member recommending to be "strong" when dealing with a customer, so I guess it's a cultural thing. But of course Westerners also have their culture, and that's quite different.
Have you ever tried to grab a fish in the water, using all your strength? It doesn't matter how strong you are, the fish will just slip out of your hand. Same thing with a Western customer! Force doesn't work; you have to "win" him intelligently!
This is not the first time that I see a Chinese forum member recommending to be "strong" when dealing with a customer, so I guess it's a cultural thing. But of course Westerners also have their culture, and that's quite different.
Have you ever tried to grab a fish in the water, using all your strength? It doesn't matter how strong you are, the fish will just slip out of your hand. Same thing with a Western customer! Force doesn't work; you have to "win" him intelligently!
15 Sep 2007 09:34
![[em12]](http://img.alibaba.com/images/eng/style/icon/emoticons_surprised.gif){kind=icon}
Post 8 of 9
First of all, thx to all of you for your contribution and support! Germex' suggestion is good and logical. However, after many efforts, I truly believe that what my suppliers care most about is money, and I'm not their most money-making customer.
As suggested by hiinthesky, looking for new suppliers is of course an option that one always have to bear in mind and in fact always have to keep doing proactively. However, the technology requirements are high.
I'm cooperating with two key suppliers, have helped develop them and provided technological support. Both of them have other customers who are less demanding in terms of technology and quality but ordering more. So they are usually served before me. That's my problem. Chinese suppliers tend to think for the here and now. I suppose it won't help me if I further develop those two suppliers because they only care about monetary aspects, in this case the total order value.
Looking for a new supplier is difficult, too, since most others currently don't even have technology that may satisfy my requirements after further advancement. So I would have to begin from zero again, investing in the open-up of a totally new plant.
As suggested by hiinthesky, looking for new suppliers is of course an option that one always have to bear in mind and in fact always have to keep doing proactively. However, the technology requirements are high.
I'm cooperating with two key suppliers, have helped develop them and provided technological support. Both of them have other customers who are less demanding in terms of technology and quality but ordering more. So they are usually served before me. That's my problem. Chinese suppliers tend to think for the here and now. I suppose it won't help me if I further develop those two suppliers because they only care about monetary aspects, in this case the total order value.
Looking for a new supplier is difficult, too, since most others currently don't even have technology that may satisfy my requirements after further advancement. So I would have to begin from zero again, investing in the open-up of a totally new plant.
16 Sep 2007 18:06
Post 9 of 9
Replying to [GentleSoft]:Dear my friend, I read your problem, and I want to say what's meaning: sometimes the deliveries from Europe have quality problems , if you could deal with this problem could help you a lot,and to communicate with your processors, as a supplier, earning money is of course their last target, but also they are sincere in keeping their customers and will do their best to required your demand.
16 Sep 2007 19:56
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