Basics Matter… “Why we lost the contract?”

After 20 years of working in Supply Chain, still my passion is in the area of Material and Supply Management… so to answer a question that many times been asked to me…

“Why we lost the contract?”

Simply… Sometimes you lose supplying contract with a company because I have visited your facility…

I started my career in QA and then moved to SC…With my all respect to all the parameters of Supply/Procurement and contract negotiation I consider Site visit to your “prospect” supplier is a must specially if it is a long term contract.. if you are the customer for a certain product or service, we tend to delegate and will be happy to stay in our office while others are negotiating the contract.. then later you cry from service or after sales quality…  There are some basics that you need to go and inspect yourself.

Go and visit the supplier who will be “your business partner”. You go and request a site tour.. do not depend on the fact that he was audited for ISO or certified bla bla bla… this is a check list and Supplier success in it may came with a good score but the concern points hit your core requirements.

You will only lose 1 day travel budget but if not done you may lose a lot later.

Go to the supplier site and make a tour in unplanned day..

• Call only 1 day ahead and and say that you are around and want to make a quick visit for the lines and walk around.
  

• Request to plug your PC.. see how they will deal with the Plug (if you need a converter and you will find them sticking a pen on the plug to allow your 2 head on 3 head plug it will be fun)

• Be ready with your safety shoes and comfortable wear..

• While you are there request a snack, move to the canteen and

have a look.. the quality of how they deal with their own food will tell you how they deal with the BOM of your product.

• Request to go to the site and politely request to go to the toilet, not the guest toilet.. to the toilet around you.. just wait till you see the sign and tell them you need a break.. there you will see the truth of the quality and EHS of the place.. not in the check lists..

I am not saying this is not done.. Just it is not done enough..