Inspired in an excellent and also very creative article Avoid These 5 Supply Chain Tactics published by www.linkedin.com/in/adamshayevitz/, I wanted to share from my own experience on those grenade tactics that damage your supplier relationship. These are tactics that when use in a manipulative manner, as a deceiving mechanism or false exaggeration may actually help to secure the sourcing of your material or service, but will defeat the purpose for a long term, cooperation spirited supplier to your Organization.
I have listed them in a way to show from quotes of classic movies. Bonus points if you want to play the Trivia to which movies they belong to. So now, let me “make him an offer he can’t refuse…”
Frankly, my dear, I don’t give a damn = Putting upfront “Cut to the chase, what is your bottom line price?”. Result, you leave out any potential for an engaged supplier by showing that when a better price comes, you’ll switch just as easily.
You’re gonna need a bigger boat = “The business you could have with us is really really big, your prices better be really good too… “. To establish unrealistic, or plain fake, high volume expectations to gain temporary leverage on price or terms.
And just like that… he’s gone… = You set false (and impossible to meet) deadlines to continue the process. The supplier is then pressed to agree to certain terms or conditions before they are ready.
You talkin´ to me’? = (insert here a sudden hostile reaction to an apparent minor negotiation roadblock). Intimidation tactic to cause a high degree of uncertainty if the supplier can actually meet certain business requirement. Be sure it will eventually come back to you with a 10x emotion factor.
Hasta la vista, baby… = Bully tactic variation of the above. In the middle of group conversation, your Sr member gets up from the table and dismisses further negotiation signaling a deal breaker.
Just when I thought I was out, they pull me back in… = This can be seen from the supplier perspective when last minute concessions are put in the table and after you stated all agreements were set and ready to sign.
You can’t handle the truth! = Deliberately hiding or minimizing critical operational constraints knowingly that will impact the cost of doing business with you. Typical examples: time consuming logistics, complex delivery schedules, above and beyond service scope or high inventory retention to respond to unplanned orders.
It’s a trap !… = You invite your counterpart for a routine negotiation meeting, just to receive her/him with a platoon of people they had no previous knowledge. They then overwhelm with tactical/operational questions forcing the supplier to commit to unforeseen conditions.
Why So Serious? = “Don’t get defensive”. One-liner to throw off balance the supplier and lead them focusing on emotions rather than in a strategic negotiation.
“Round up the usual suspects…” = To continually invite the same supplier (or group of) to quote projects, knowing the business will be awarded to another and use this only as a mean to give appearance of a competitive bid process .
Overall, as an internal resource or external consultor, your mission is to negotiate in the best interest of the Organization your work for. This would include to prevent that poor or unethical supplier relationship practices affect the deliverables you obtain from your supply base, and that are a key factor in creating value for your Customers.
If you found this article of interest, please “Like”, “Comment” or “Share” to help me reach companies or individuals where I contribute with my Professional Services. I’m available for consulting on Sourcing or Procurement Team Mentoring as well as Supplier Management.
