Supplier Relationship Management

What a slippery slope we’ve embarked upon.  Do you strive to establish very close relationships with your suppliers/vendors or to hold them at arm’s length so you can competitively bid all requirements or do you “cozy up” so as to develop a “favored relationship?”

Yes it’s truly a slippery slope.  You are damned if you do and damned if you don’t.  If you “cozy up” you can be accused of favoritism or worse, collusion.  It is truly a real dilemma and I’ve seen it play out several times and every time it’s an unmitigated disaster! No one wins.  It’s truly a lose-lose scenario.

There is a real ethical issue here on both sides of the question!

OK, don’t give me platitudes (do dah, do dah) give me real solutions to this real issue.

So as a purchasing agent, buyer, project manager, program manager, shipping manager, accounting manager what do you do?  Which side of the tight rope do you walk?  Do you not accept ANY GIFTS?  No calendars, no pens, or even sticky pads? Recommendations are below.

• Do not accept lunches, alcoholic drinks, or invitations to a hospitality suite.
• Do not go golfing with suppliers.
• Do not accept ANY GIFTS.
• DO NOT ACCEPT ANY GIFTS.
• Competitively bid all purchases.  If you have Blanket Orders or Purchasing agreements in place you should have competitively bid those and the releases against the Blanket do not need to repeat that process.
• It should go without saying that during the competitive bid process what you instruct/tell one supplier/vendor you tell all (and its best to do that via written instructions/email).
• Guard against showing real or perceived favoritism.  Treat all suppliers/vendors equally.

Yeah, yeah, I know this seems to be over reacting, but trust me, I’ve seen more than a few good people go down the tubes due to allegations of impropriety.  This is where you are guilty and it will be impossible to prove your innocence.  So take this advice, be cleaner than clean!!!

Either side of the pit is death.

So, how does one win in this tug of war?

It’s so simple that it’s ridiculous.

Do Not Play The Game!

The ethics piece is not all that difficult.  You simply have to walk the straight and narrow, never allowing even the appearance of impropriety to cast a shadow on you.

It’s far more than business ethics.  There is also office politics, prior relationships, and petty jealousy. It’s truly amazing when you find out the “whistle blowers” identities.  They are associates, colleagues, contemporaries, friends from other disciplines or companies, former employees and sometimes it’s your supplier.  It’s the politics and jealousies that will kill.

My advice is simple; be cleaner than clean and cover your ass if there is any discussions or hint of animosity.  A letter to file is often enough to save your reputation and your job, but list specifics. Include names, dates, witnesses, occasion, and facts if they can be had.

Your path to business success.