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Add You - Keep Your Suppliers Eager With a 70/30 Split
If you are young and have not chosen your career yet or if you've been working for some time and have decided to change your job or career but are not sure which career or job you
Key Learning Point
Effective programs with your supplier partners help everyone succeed. Be deliberate, and creative, in your contracts.
Action Steps
Identify your most important supplier partners. Review your agreements with them
Colonel Sanders, the icon of Kentucky Fried Chicken®, recently went through a makeover. Only his fourth in 50 years. Management said the move is an attempt to keep the brand rele
Whenever he contracts to purchase items from more than one supplier, he gives one vendor 70% of the total purchase, while a second vendor gets 30%. And he tells them both exactly what he is doing.
Why this unequal split? And why tell the two suppliers about it? Here’s why:
If the first vendor does a good job, she knows she is keeping well over half the total purchase volume. But if she does a poor job, she knows she stands to lose more than half of what she is currently supplying.
On the other hand, if the second vendor does a great job, he knows he could more than double his orders if he takes over from the first vendor. However, if he does a poor job, he knows he is dispensable as he supplies less than half the company’s required volume.
This is an interesting technique for motivating supplier partners that smart purchasing managers understand. Now you know about it, too.
Key Learning Point
Effective programs with your supplier partners help everyone succeed. Be deliberate, and creative, in your contracts.
Action Steps
Identify your most important supplier partners. Review your agreements with them
Companies that sell reinforcing steel bars (or concrete bars - also known as Rebar) have seen a boom in recent years. Many cities have seen a surge in residential and commercial re
Why this unequal split? And why tell the two suppliers about it? Here’s why:
If the first vendor does a good job, she knows she is keeping well over half the total purchase volume. But if she does a poor job, she knows she stands to lose more than half of what she is currently supplying.
On the other hand, if the second vendor does a great job, he knows he could more than double his orders if he takes over from the first vendor. However, if he does a poor job, he knows he is dispensable as he supplies less than half the company’s required volume.
This is an interesting technique for motivating supplier partners that smart purchasing managers understand. Now you know about it, too.
Key Learning Point
Effective programs with your supplier partners help everyone succeed. Be deliberate, and creative, in your contracts.
Action Steps
Identify your most important supplier partners. Review your agreements with them
How often have you heard of a CEO or manager deciding some or other book is the ultimate tool in direction for his or her business? It’s been books like Tom Peters’ In Search of Ex
On the other hand, if the second vendor does a great job, he knows he could more than double his orders if he takes over from the first vendor. However, if he does a poor job, he knows he is dispensable as he supplies less than half the company’s required volume.
This is an interesting technique for motivating supplier partners that smart purchasing managers understand. Now you know about it, too.
Key Learning Point
Effective programs with your supplier partners help everyone succeed. Be deliberate, and creative, in your contracts.
Action Steps
Identify your most important supplier partners. Review your agreements with them
The only organisation that is not ripe for change is one that has absolutely no constraints to its performance. Such an organisatio would be delivering an infinite amount of its go
This is an interesting technique for motivating supplier partners that smart purchasing managers understand. Now you know about it, too.
Key Learning Point
Effective programs with your supplier partners help everyone succeed. Be deliberate, and creative, in your contracts.
Action Steps
Identify your most important supplier partners. Review your agreements with them
As more and more people seek to make their fortunes by starting their own business, there has been an increase in interest in finding the perfect business partner. The right busin
Key Learning Point
Effective programs with your supplier partners help everyone succeed. Be deliberate, and creative, in your contracts.
Action Steps
Identify your most important supplier partners. Review your agreements with them on a regular basis. Be sure they are motivated to give you the best service they can right now, with an eye towards more business in the future.
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