SUPPLIERS - TYPE OF SUPPLIERS YOU NORMALLY FIND AROUND THE WORLD

Here i am back again active to my "old forgotten" blog. The season of sharing comes back to my thought again.

The other day i was busy preparing a new presentation for my upcoming program and it struck me right to my nose and slap me in the cheek the thought on my current curiosity. Suppliers!

How they behave and how they react to situational challenges and changes reflect on our own organization behavior when come to treating our own customers.

For one i do notices that there are currently (the list may grow, up to you guys out there to think for me now!) 7 types of profiling i can create.

a) The leader - a supplier which we all want to keep and we want to emulate ourselves, a type which take all challenges and issues in the strides and move along and solve it and make their customer happy. Example of such supplier on a global scale will be companies like Microsoft. They lead from the front and all issues from the global view are tackled straight on and they control the market share of their industry.The set the standard for other to follow.

b) The Innovator -  these type of supplier are in the Apple or Samsung category which always invent the new wheels to keep up with competition. They are less caring to their customers compare to the leader. By keeping up with new innovation, they keep consumer on their heels and made them greedy for more and more. The evil of capitalism is the greed for new and better product and keep the hunger for more and the angel are these companies who generate more profit. However, these two companies are the extreme, but i will be glad to take in any supplier who are in this stage. Innovator not necessarily control the market they are in but what i need is suppliers who willing to think and reinvent for customers.

c) The Follower -  these are supplier which will follow the competitor lead and even follow your needs as a customer, i will anytime keep them if they perform of course as a supplier. Follower philosophy are more conservative in thought then the other group of suppliers. It may be a safe bet they will strive for customers need.

d) The Newbie - as the name sound, these are new player in the industry and their only aim is not profit but penetration. A terrific example will be in the smart phone industry where cheap Chinese phone is competing with Apple and Samsung for the market share. They will be glad to bid their time to be less profitable or even marginally on the negative side just to get on board. I will generally very cautious to slightly optimistic to such suppliers. They will and may offer good pricing but quality and performance is another issue altogether. Their appetite will be very big but their tummy is only that small. 

e) The Protected -  The reason is they are there not due to their talent but a cell grown out of bureaucracy and politic. Such companies normally in the market due to government intervention to protect self interest. Another reason of their existence due to their been in the right place at the right time and serve the needs and unfortunately only them have a control over the industry, Example are a plenty. National oil companies, nationalized power companies, nationalized airline and shipping companies. As a corporate leader, if a majority or a big bulk  of your expenses are with them, god bless you. They do not behave like a supplier, more like giving you instruction what to do and assure themselves you will pay them first.

f) The Competitor -  these are suppliers which seem to be "lost into your track" and becomes your supplier. They actually are also either directly or indirectly your competitor. One wonder what the hell you are doing to engage such suppliers? Reason can be from what you do not have and you need from them. Remember the relationship between Apple and Samsung? They are in a supplier  - customer relationship before till now i think as Samsung are the world largest producer of chip needed for smart phone!

g) The Complacent - this is the worst of the lot frankly or equaled to the Protected. They got your account and they feel secure until the next review and they do not even to ask you anything or service you except assuming they will have your orders. They will sink and when they realize it will be too late. I know as i experienced such supplier head on before.

On my next blog tomorrow, i will share the supplier matrix.

Regards