Suppliers
or fabricators are referred to sometimes as
producers or factories who produce tile, slabs,
cut to size, or other special works such as
fireplace surrounds. These suppliers sometimes
are misunderstood.
Everyone communicates differently with suppliers
and most often different prices are given
to different customers as well as different
qualities of workmanship. This can all be
most frustrating to buyers.
What to buy and from whom is always a buyers
concern. Perhaps everyone should define what
they expect from a supplier either in writing,
verbally, or through trade associations. Everyone
wants basically the same thing, but no one
really says it. The following is my outline
of a good supplier.
Communication
Suppliers
should communicate in the language of the
customer or buyer. They should be clear in
their communication whether by fax, letter,
or phone. Being clear means being detailed
like a newspaper reporter does when they are
trained to think of the 5 W's: Who, What,
Where, When, and Why.
So many times suppliers tend to give you part
of an answer and not all. For instance, a
supplier may say "Your shipment is being prepared
and the freight costs will be approximately
___?" Later on you get upset when you forgot
to ask, "Well, when will this shipment leave?"
Suppliers
have a problem communicating with customers
and vice versa. I have heard many buyers ask
"how much is it for cut to size granite?"
The buyer never stated the quantity, what
size, when he needed it etc.
Such general questions can really get a customer
and supplier into trouble. Too much is taken
for granted. The supplier and the customer
must learn to communicate clearly and come
to a common understanding of the facts.
The
supplier must be responsible to ask the questions,
supply all the answers clearly and in a timely
manner. So many times delays in shipments
are not reported to the buyer until the buyer
asks "Where is my shipment?" The supplier
should be communicating periodically to the
buyer about what is happening, give documentation
when available, and keep the buyer informed.
When problems occur, which in the stone business
they so frequently do, the supplier should
communicate this immediately. If the stone
is varying in tonality or veining more than
what the buyer expected, the supplier should
get approval of this variation from the buyer
in advance of shipping.
Reliability
All
suppliers must be judged on whether they are
reliable. Reliable should mean responsible
to ship quality merchandise in a timely fashion.
For most buyers this is understood. For many
suppliers this is not true.
Suppliers must understand that the buyer is
always correct. If a supplier wants to maintain
a relationship with their buyers than they
must ship quality materials in a timely manner.
Too many times suppliers have lost their customers
without knowing why. Later on they find out
the quality was not good or they took too
long to ship. Delays in shipping can cost
the buyers money.
A
Program
Buyers
are looking for a program. This program may
be, for example, to have 25 granites in the
production program consistently and regularly.
Some of these granites may have to be commodities
while others can be exclusive to one supplier.
For example, in Brazil, a buyer may want a
supplier to have Juparana, Capao Bonito, Negro
Tijuca, Lavras, Kinawa, and Lila Gerais which
are all considered commodities.
The remaining granites can be others which
the supplier wants to promote. However, it
is important the supplier be able to supply
quickly the quality material they are promoting
and on a regular long term basis. The supplier
must identify his niche in the market and
let customers know what to expect from him.
Too many times suppliers try to be everything
to everybody. Eventually, this lack of specialty
and direction will cause problems.
There
is nothing more frustrating to a buyer to
find out that the material he has been selling
is not available today or sometimes ever again.
What kind of program is this? Today you have
a granite and tomorrow you do not. What happens
to that job that you sold 800 S.F. of and
only have 500 S.F. in stock left? What do
you do with that stock?
Further,
how can the supplier expect a customer to
build a relationship and regular sales if
the supplier can not offer a regular program?
Buyers would also like to have a supplier
who can service all their needs and that may
mean offering slabs and tiles from one supplier
or even cut to size work. Tiles need to match
the slabs in tonality and color and veining.
It is frustrating when a buyer is forced to
buy slabs from one supplier and tiles from
another and then when the shipments arrive,
they do not match.
Marketing
Suppliers
need to have a marketing program. This means
a clear and proper useful catalog with specification
and testing details. Proper color rendition
of the stone they are selling also helps.
Sample boards with proper names, not fictitious
ones, should also be available. Advertising
in magazines helps to promote not only the
supplier but their customers. Too many suppliers
do not have advertising or marketing. A clear
a proper price list is also required.
Telephone
solicitation is sometimes required by the
supplier as well as periodic visits to his
clients to understand their needs and how
they are servicing them. Trade shows are becoming
so big that a supplier is now conspicuous
by his absence. Many buyers think the supplier
is not serious about their market when they
do not attend and exhibit.
Investing
in a market is a long term goal and must be
treated with reverence and respect. Consistency
in marketing and innovations are the key.
The repetition of being put in front of customers
gets the suppliers orders and gives credibility
to the suppliers. Pricing is not the only
way to sell. Sometimes having key representation
or an office in the market you are attempting
to sell into is a must. Buyers want to have
communication easily and quickly with their
suppliers.
Quality
Buyers
expect and take for granted that a supplier
has quality controls. This is a mistake as
not all suppliers have quality controls. What
is quality is another question so often taken
for granted by buyers and suppliers.
However, there are standards and the supplier
must take the responsibility to define and
adhere to quality standards. Perhaps the ISO
9000 applies to the stone industry and perhaps
quality is defined by the M.I.A. Design Manual
or A.S.T.M. test data requirements of performance
on stone. Whatever, the standards the supplier
is using, they are responsible to make sure
that it fulfills the requirements of the buyer
and the market being sold.
Sales
Procedures
Buyers
expect suppliers to have consistent sales
techniques and define those in the beginning.
As an example, some suppliers do not know
which market segment they are selling to eg.
contractors, distributors, architects, owners,
fabricators etc. Suppliers need to be consistent
and not try to sell everyone. If they do sell
different markets they need to be aware of
the different pricing levels in each market.
Some suppliers sell a slab for the same price
as they sell a container of slabs. A distributor
does not want to hear that his supplier is
also selling and marketing to his customers.
Most
times the suppliers have no knowledge of the
market they are selling into. They only want
to sell. Thus the market becomes even more
confused and the distribution channels are
thwarted. All buyers want is to have a supplier
who has a consistent and dependable sales
program.
Many
suppliers have failed in this market based
on a poor sales program.
Pricing
Suppliers
must be aware of the competition. The supplier
must make a profit as well as price their
product competitively. Many suppliers do not
know what the market prices are or try to
think that their higher prices can be justified
because of their better quality.
In today's age when so many people have similar
machines and qualities of production price
becomes a major factor in sales. Those suppliers
who adjust their prices to reflect the current
exchange rate more quickly have an obvious
advantage.
Many
times the supplier depends on the machinery
people who sell him that machine to tell him
what he can charge for the finished product.
Never listen to a machinery supplier.
They will many times mislead you into a comfort
area and make you imagine that you will make
a larger profit than is realized in the end.
A supplier must study his market himself and
know the customer demands for pricing as well
as the competitors.
For
example, some suppliers did foresee the Spanish
exchange rate of the dollar changing from
100 to 135 pesetas per dollar. They reacted
quickly by either faxing or phoning all their
customers with new dollar prices. These lower
prices got them immediate response and orders.
Suppliers
must be consistent in their pricing. Too many
times buyers receive a price and 30 days later
when they are ordering find the prices have
changed. Sometimes, suppliers have taken orders
at one price and shipped at another price.
There are reasons for this of course, but
it can be a sure way of losing a customer.
Terminology
A
supplier who wants to sell in a market should
know the terms of workmanship in that market
and sales. If the buyer wants a quirk miter
he should not have to explain to a supplier
what this means. The M.I.A. puts out a list
of terminologies as well as Stone World and
it would behoove the suppliers to know and
understand the various terms.
Office
Procedures
A
supplier must be able offer quick and reliable
replies. For example, so many times a supplier
says they offer cut to size work but when
you ask them for prices you may or may not
see them reply for a week or at all.
Many times the supplier is not capable of
quoting cut to size or does not have an in
house estimator for figuring jobs and prices.
Further, the pricing levels are sometimes
not clear nor consistent. What a supplier
calculates today for quirk miters may not
be what he figures tomorrow.
Sometimes
the supplier does not have a man responsible
for quality control at the factory. Thus what
the outside sales people have sold is not
communicated to the factory workers nor to
the block buyers.
This can cause tremendous problems. Later,
during the job, the buyer may have trouble
communicating with the salesman who sold the
stone, for he knows and controls very little
at the factory.
The
supplier must be able to implement communication
control within the office, the factory, and
to the client. Documents must be prepared
and many times faxed copies to the buyer in
a timely manner.
The original documents must also arrive in
a timely manner to avoid delays. Shipping
methods, packing controls, and on time vessel
or truck departures are also important. Organizing
all this in a suppliers office can be difficult
as the person who is also the international
sales manager may be responsible for everything.
Suppliers many times do not hire people to
service the needs of the demand that is put
upon them. Having a factory with good machines
is not enough to satisfy the problems that
will and do occur.
Responsibility
Buyers
want to know that a supplier is responsible
and stands 100% behind what he produces and
sells. A guarantee or warrantee would be nice.
When there are problems, the customers want
to know that the supplier will respond quickly
and resolve the problems.
Suppliers need to be honest not only to themselves
when understanding their own limitations but
also to the customer in communicating what
they can and can not do. Many suppliers say
"No Problem" when they realize up front they
may have problems. When dealing with stone,
there are always problems.
How the supplier handles these problems with
his buyer may determine how good a supplier
he really is to the market.
To
summarize, communication, reliability, marketing,
quality, sales procedures, pricing, terminology,
office procedures, and responsibility all
play a part in determining what makes a good
supplier.
It is the suppliers responsibility to constantly
update and review the companies image, direction,
needs, and role in the market which is ever
changing. Today so many suppliers are going
out of business or changing ownerships.
Many have lost sight as to what made them
successful in the beginning. Of course it
is easier to sell stone in a sellers market.
However, in most parts of the world today,
it is a buyers market and there are more suppliers
than buyers.
