As a purchaser, have you been threatened by suppliers to stop supplying?

By justchinait
December 9, 2020

As a purchaser, I often encounter threats from suppliers to stop supply in the actual work process. What should I do? This is a problem faced by many purchases. To solve this problem, we must first understand: “Why should the supplier stop supplying us?”

Reason 1: “The procurement volume is small, and the supplier does not care about us.”

It is widespread for suppliers (unusually large manufacturers) not to pay attention when companies purchase small quantities, or the order amount is small. Many of the reasons for cooperation are based on the relationship between upper-level leaders or the pursuit of some shipments.

Therefore, once the leaders of both parties change, or the relationship (broken), the supplier does not cooperate or threatens to stop supplying, this situation is most likely to occur. In other words, the other party is busy with other companies with large purchases and has no time to pay attention to us.

Suggested solutions:

Understand the relationship between suppliers. What is the supplier relationship, do our purchasing staff understand?

The relationship between procurement and suppliers, procurement from the bottom of the heart should be equal to the supplier. Many purchasers are arrogant and arrogant because they are buyers, which is easy to cause disgust. The most important thing is to let the supplier recognize that there is a problem with our personality, which requires us to adhere to the basic principles of being a human being and have a humane, do things say and do, not push back and forth so that the supplier is willing to continue with us (relationship Maintenance is very important). The last point is, of course, that we can achieve a win-win situation. Remember: Everything is human beings; don’t ignore the feelings of others.

At the same time, we must also know that cooperation based on relationships is extremely unstable. Choose manufacturers and products according to your development needs as much as possible. “The factory bullies the business, and the business bullies the factory.” This is the root of human inferiority. If you want to develop hand in hand with manufacturers, you should try to choose the right partner.

Reason 2: “We owe the supplier money.”

“Then you think you deserve it. You always owe others money. Why should others give you back?”

Nowadays, some buyers and some bosses like to do such things. They don’t pay back the money they owe. They use the money for other purposes. They take up the supplier’s money. They still feel at ease. They don’t even pay back if they have enough money. Debt collection. Do you think that others are stupid? Do you believe that others are easy to bully, as long as the supplier is possible, it will be out of stock. Maybe I can’t do without you now, and I will be stronger one day, and I will say bye. Bye!

Someone said, “It’s not that I don’t want to give it, but the company has no money, and the customer hasn’t paid back.” It sounds reasonable.

I have encountered a case before: a purchaser working in a US-funded enterprise stopped production because it did not supply. The foreigner asked the reason, but the purchase said that he had not paid. The foreigner asked the financial staff again. Why don’t you pay? (Why don’t you pay for it?) Finance has said that the company has no money. The foreigner did not scold the purchasing staff but scolded the investments. He scolded him for not saying so early, and why he didn’t make a good capital production plan, the foreigner ranted to the finance, “reputation! Reputation!”

Suggested solutions:

First of all, we must solve the problem of funding. There are many ways to solve it. I will only list two of them, cash flow planning, supply chain finance, and consultation with strategic suppliers and strategic customers!

Reason 3: “The supplier asks for a price increase; we do not agree.”

Have you analyzed the reasons why suppliers demand price increases?

Is this price increase reasonable?

Have you done a cost analysis?

Have you calculated standard costs?

Have you used sensitivity analysis?

If you are not clear about these, reply, “I don’t agree.” How could the supplier swallow this breath, and how could it be possible to supply you at a loss.

Some buyers have changed their design plans, leading to increased costs, so they do not agree to price increases!

Some buyers, knowing that the price of raw materials has risen, still do not agree to the price increase!

No matter what, I disagree with the price increase!

Every year, the cost is fighting, and the profit of the manufacturing industry is thin and thin. Everyone is tired of such things.

Whether to increase prices or not, it involves the relationship between buyers and sellers, the cost accounting capabilities of both parties, how to formulate price terms, how to manage price risks, and how to understand suppliers’ market conditions—facing the market together, involving supply chain management strategies.

Here are some suggestions

(1) Don’t rush into the topic when negotiating. At the beginning of the discussion, it is best to first talk about some unrelated issues to get familiar with the other party’s surroundings and relax both parties before introducing the problem slowly.

(2) Use “low posture”. When negotiating and negotiating, try to express the difficulty of the price proposed by the supplier, say more words such as “Oh! No way!” and so on, to win the other side’s sympathy with a low posture.

(3) Try to avoid letter or telephone bargaining, and require face-to-face contact. Face-to-face discussions have better communication effects. They can often use body language and facial expressions to persuade the other party, and then ask the other party to compromise and lower the price.

(4) Use focused listening and gentle attitude to win the favor of the other party.

Finally, I hope everyone can solve all the problems in their work and work with a kind heart. Your hard work will be rewarded in the future! Thank you.

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