Customer and Suppliers

The fate of any business depends, in part, on the relationship between a supplier and its customer(s). In my experience, that relationship can take one of four forms. The four are listed above in the 2x2 table.

#1 Partnership: The customer and supplier are well run and well organized companies. Their operations are efficient and the relationship very professional. They "get things done" together. Both companies will enjoy good quality, delivery, and cost performance.

#2 Chaos: The opposite of partnership. Neither company is organized. Waste abounds in both operations. Communication is awful. People often take defensive postures when faced with difficult situations(which occur often). Money is wasted as one form of waste after another governs both companies

#3 Hypicrocy: The supplier is a well run company. Its operations are lean. A culture of continuous improvement exists. The customer is the exact opposite. Yet, the customer lays constant demands and requirements on the supplier that make no sense. The customer stays in a reactive mode and spills reaction onto the supplier. The supplier will be as accomodating as possible but will at some point ask to be compensated. The customer will balk at adding any costs. Progress will stall. Problems will not be solved.

#4 Obstinance: The converse of hypicrocy. The supplier is chaotic and out of control. Its processes and systems are not capable of providing quality products and services. The customer is world class. Well organized, the customer knows what he is doing. He will make every effort to help the supplier. Most suppliers will welcome the help. Some will resist the help thinking the customer is the problem. The supplier will spend his time justifying his actions and making everything look like the customer's fault. The customer will eventually pull the business but only after much money and man-hours are spent in trying to develop the supplier.

Where are you with your suppliers and customers? In what block do you fit? To start the road to partnership, you first need to know where the relationship stands. Be honest with yourself and each other.