Your distribution customers may place orders for your products thru a variety of channels like phone, email or online. But, how were you added to that customers supplier list in the first place? Likely, their Procurement Office or Chief Procurement Officer (CPO) investigated your company, it’s products, background and delivery standards. They wanted to make certain of your reliability and quality of service.
If you want to keep their business and increase your distribution business client base wouldn’t it be good to know what those CPO’s are thinking and what their priorities are? The business environment is always changing and improving your supplier relationships will lead to strong business ties, which can weather a variety of pressures.
A study by the Consero Group in the 2015 Global Procurement and Strategic Sourcing Data Survey reveals CPO’s do not feel they have enough resources to manage their operations effectively. This gives your distribution business a gap to fill! Find out how you can help your clients procurement group with the resources they need.
You are the supplier side of one top priority from the survey – “improving supplier relationships is essential to the efficient sourcing of the goods their business needs to operate”. Another top priority cited in the study is cost reduction.
The data collected in your Enterprise Resource Planning (ERP) system and your Customer Relationship Management (CRM) system may reveal trends and insights which could be valuable to your client CPO’s.
63% of CPO’s believe the metrics used to evaluate procurement practices in their organizations actually create negative behaviors for their business. Can your system metrics provide better insight?
Does your company provide monthly reports to your customers on items, volume, costs and delivery data?
If not, start a conversation with your clients CPO’s on what information would be valuable to them,
And, if you already do, setup a meeting to discuss if the data you are sending meets their needs.
Are you just supplying data? Or, are you providing information with analysis of trends, recommendations, and opportunities to improve. Your research and knowledge of the items your clients need may lead you to be able to recommend products which meet their needs, but at a lower cost than what they are currently ordering.
If you need help with developing reports that can improve your customer relationships, Contact Socius Distrubution 20/20 team at 800.589.6614 for assistance with Business Intelligence and Reporting initiatives.