The last CPO Corner talked about linking potential suppliers with the right people within your firm to achieve innovation. Today, we’ll focus on the value of getting out to the supplier. Where the last column was about aligning with company strategies and building bridges to suppliers who can support them, this one is about making sure that your firm – regardless of size – is the first one that your suppliers call when there is a new capability being developed.

If you picked up the phone to call the president or CEO of the companies that produce your direct materials, would you get through? Do they know who you are?  If they do, great. You’re already ahead of the game. If they don’t, forging relationships with them needs to be one of your top priorities.

The smartest procurement leaders are visible at key suppliers. They are proactive at making themselves better known, and their companies become more visible as a result.

Get out of the office and visit their key facilities. Understand their business strategies and where they are making investments. Where can your company take advantage of their trajectory? New ways to package or dispense the product you are making? 

This information is unlikely to just drop in your lap. You need to be proactive in making yourself better known within the firm. Do they need a speaker for their sales meeting? Do they have a Voice of the Customer” roundtable? Volunteer – make sure they are aware your company considers them a key supplier. Educate them. Time and again, I’ve seen senior executives aware that their company provides a part or ingredient for a particular product but be shockingly unaware of the other brands produced by the same customer, other products they could be supporting.

What do you do if your company is a small firm and you’re buying from a behemoth? Relative size of the companies can be an impediment, but it’s just a small one. Suppliers still care about sales, they still want to forge tight relationships with their customers. You might not be able to pass them huge purchase orders, but you can be a visible supporter. Something as simple as co-presenting at an industry event or being a reference for your supplier’s sales team when they respond to an RFP can make a huge difference in raising the visibility of your firm. Do they have an innovations center? Arrange for key executives from your company to visit.

Be prepared with “The Ask”.  When you’re at a supplier’s sites it is likely you’ll be asked, “how can we serve you better?”  Tell them. Let them know what you need to see done differently. Now’s the chance to talk about innovation – bring them a challenge, learn what their research is telling them that will be helpful to your firm, make sure your company will be a beneficiary from the new innovations they are planning.  Suppliers are asked every day to lower costs – this is their chance to use their creative resources in a way that grow both your businesses.