Sign & Digital Graphics

July '17

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Page 28 of 104

24 • July 2017 • S I G N & D I G I T A L G R A P H I C S The research ignores Vendor A because nearly the same amount of advertising was purchased in Year One as in Year Two. Likewise, Vendor C was excused from further analysis because the amount of business with that supplier doubled. The conclusion drawn was that it must have been meeting Acme's expec- tation to be awarded twice the business. But notice Vendors B and D had a sig- nificant decrease in Acme sales. In Year Two, Acme gave its supplies and parts business to Vendors X and Y instead. Interviews were conducted with the end users of office supplies and equipment parts. The decision-makers were asked one simple question—What was the rea- son you stopped buying from Vendor B and D? Notice that the decision-makers were not asked what factors led them to hire Vendor X and Y, respectively, as the pur- pose of the research was to detect trends in why customers fire certain suppliers. The study was overwhelmingly con- clusive... and look at the its results. More than seven out of 10 times a sup- plier was fired, the last straw was linked to a delivery incident! And isn't a vendor that has gone out of business just an aggra- vated delivery problem? You aren't going to get your order delivered if they've closed up shop, right? That means more than three out of four times you lose a customer, it is likely due to your com- pany's failure to keep its delivery promise. Getting Rid of Delivery Problems So, if you detect you have delivery problems, what should you do? Here are some suggestions. Analyze your delivery track-record. At the time you receive an order, write down the promise date somewhere on the purchase/work order. Be sure it's the date that you've conveyed to the customer to expect the order will be in their hands—not just its ship date. You may want to note the planned ship date as well—particularly if you suspect your delivery problem is with your pack- age carrier. Collect three to six months of data. If you can re-create this data for past orders, that's great. Calculate what per- centage of orders were received on or before their promise date. How many orders were shipped on or before the planned date? From this analysis, you should be able to set goals for improve- Reasons for Switching Suppliers Frequency of Responses "Price was too high" 8.1% "Poor quality" 9.4% "Failure to deliver on time" 70.2% "Disliked the sales or service rep" 6.2% "Vendor went out-of-business" 6.1% Goods & Services Procured From: Year One Year Two Items Purchased Vendor A $3,000 $3,200 Advertising Vendor B $2,000 $0 Office supplies Vendor C $1,500 $3,000 Cleaning services Vendor D $750 $100 Equipment parts ⇓ ⇓ ⇓ ⇓ Vendor X $0 $2,400 Office supplies Vendor Y $0 $800 Equipment parts More than seven out of 10 times a supplier was fired, the last straw was linked to a delivery incident! with equipment, technologies and products Register Here: or call 800.560.9941 Get Long Beach July 20-22, 2017

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