Time to Rock your Customers Boat?

There comes a point in many long term B2B journeys where Suppliers run the risk of becoming downright complacent. The relationship appears to be humming. Profitability is good, contract compliance is acceptable and there are positive gains in lowering their cost to serve the customer.

What could possibly go wrong? Typically everything or nothing.

When "everything" goes wrong it's because something beyond the Suppliers control took place. New procurement people arrived; the AUD spiked or market demand simply tanked. It happens.

However, in a recent workshop with the above pictured CEO's, we explored what happens when "nothing" goes wrong. Generally, it's a scenario whereby a Supplier fails to leverage the positive situation they are in with a Customer. Stable and secure they have a deep knowledge of customers needs & could, with confidence, propose service and supply innovations to the mutual benefit of both parties. But they don't.

Rather than "take the helm" and steer the relationship into more profitable waters, they play it safe and avoid "rocking the boat". They fail to act as a true Partner would. Don't do it.

With so much outside a Suppliers control, it's vital that full use is made everything within their realm of influence. We agreed that this means making the following a priority:

1. Knowing your total cost to serve 2. Giving customers what they want on your terms, not theirs 3. Teaching customers how to treat you

Crucially, highly valued Suppliers have the courage and self-belief to "rock the boat" when they know it's in the best interests of their Customer. Perhaps, it's time.

With thanks to Julien O'Connell and Warren Steinicke