Competition for good supplier and a good customer

1. Article No 2
22.03.17
Viva La Competion
No management discourse or discussion can avoid the term competion. It is an all
pervasive phenomena.
The day I started working in material management, for every aspect, the reason was
competion. I must procure the best quality material because my organisation has to
compete. . I must procure at the lowest rate because…. My inventory must be lowest
because…..You can put any parameter but reason is competion.
I was rewarded for my efforts by clubbing manufacturing to my responsibilities. I
must reduce my WIP because my organisation has to compete. . I must adapt lean
manufacturing concept because my organisation has to compete. I must adapt kyzen
concept because…..I must ….
There was no end in sight as I climbed further up. I realised one thing, the reason I
was in a position to give results in manufacturing, institutional marketing, tool room
and of all the things HR and finance was rooted in my first assignment and that was
vendor development.
That experience was very enriching. It made me to learn every aspect of the
business, and that from the most hard-core practionars. There was a lot they told me
and a lot more they did not tell directly, which was actually much more important.
It was about competion.
I was sitting with one of my key vendors. I was just successful in convincing him why
he should take up my work on priority in spite of not giving him order in time, not
paying him overdue payment even after promising, and asking him to modify a tool
at his own cost within 24 hrs. The new lot was of a very high value. One gentleman
came in. He was introduced to me as head of the department of procurement of
some big name in the industry. He wanted something urgently which he had not
ordered, which involved some modification of one of his machines. The value of
business was one tenth of what I was offering. It was to delay my work by two full
days. He spent just five minutes for work, but spent half an hour gossiping. I was
really getting worked up.
I was very curious, anxious to know why he got a VVIP treatment and I was ignored.
I also knew I will not get a truthful answer I f I ask directly. I kept patience and in next
two hours I was rewarded.
What I got was totally different aspect and field of competion. It was an eye-opener
for me.
What he explained to me in next two hours can be summarised in ten sentences.

2. 12.04.17
Everybody who was looking for a good vendor has to compete with others looking for
the same vendor. He has certain capacity. He has to decide for which customer he
has to use it. His customer have to compete with each other to win him as a vendor.
It was not compulsory for him to revile his criteria for a good customer. If he was a
desirable vendor than he always had more enquiries than his capacity can support.
He dictated the terms, but if he had more capacity than his customer did the same
thing.
If you are good customer than the vendors will compete with one another and if you
are good supplier than vice versa.
So it does not matter if you are a customer or a supplier, you have to be really good
to dictate your terms.
Viva La Competion