Boots On The Ground -- Routine Supplier Visits

Well established and vetted suppliers are not inclined to intentionally mislead their customers, but it’s human nature to have a bias toward optimism and the presentation of positive facts and responses. There is a natural aversion to sharing bad news until the last possible minute, often with the sincere belief that problems can be fixed before they affect due dates and downstream processes.

Aversion to the sharing of bad news is not limited only to communication between companies. In fact even within suppliers' own organizations there is often good news bias that limits customer representatives' ability to provide factual and up-to-date information from the shop floor.

Good News Bubbles

Electronic communication - phone, text, email, and even teleconferencing - is less interactive than in-person methods, and, in varying degrees, it is also more formal and pre-planned. The effect is that it's more limited and susceptible to positive bias.

When they over-rely upon electronic communication, procurement professionals run the risk of operating within “Good News Bubbles” that effectively keep out information about problems and potential problems at their suppliers.

That Horrible Sound... POP!!

When a “Good News Bubble” pops, and bad news finally gets through, it's too late to be proactive. The only remaining options are reaction and recovery.

Deadlines are missed, shortages happen, rework becomes necessary, and expediting costs are incurred.

In severe cases, last-minute (expensive) travel is arranged, emotions run high, and important decisions are made under duress.

In the worst cases, these unfortunate incidents severely impact customer operations and damage the customer-supplier relationship.

Avoiding “Good News Bubbles”

Although it’s impossible and unnecessary to travel to all suppliers, it’s folly not to identify specific suppliers that require routine visits.

Routine supplier visits – Boots on the Ground – are a powerful tool for reducing the bubble effect and proactively managing the supply chain. This is especially true for critical suppliers, underperforming suppliers, new suppliers, and work transfers.

Initial Supplier Visits vs. Routine Supplier Visits

To get the most from supplier visits, it is important to understand and manage how they evolve from the first (initial) visit to highly functioning ongoing (routine) visits.

Initial Supplier Visits are often hosted and “chaperoned” by a supplier's salespeople and executive personnel. They tend to be formal, introductory, and highly choreographed, but they do serve a valid purpose in establishing relationships and setting expectations.

Boots On The Ground

While Initial Supplier Visits are important, it is also important to identify certain suppliers that require ongoing and periodic supplier visits -- Routine Supplier Visits.

The first few routine visits to a supplier can also follow a formal and choreographed pattern. But because they are ongoing, over time, they change. On the supplier side, sales and executive personnel tend to eventually bow out and relinquish “hosting” duties to their operations personnel.

Operations personnel are more able to furnish up-to-date information directly from the shop floor and their communication is generally less varnished. They are more likely to express accurate -- or at least more timely -- capacities, capabilities, and lead times. 

The extent to which relationships are forged with those closest to actual production at a supplier can often determine how much good information flows to the customer and ultimately the extent to which unhappy surprises are avoided.

Supplier Visits Reveal More Than Just “What is Said”

Beyond verbal communication, Routine Supplier Visits pick up other types of information.

• Is a major piece of machinery down for maintenance?
• Is a key person in the shop suddenly gone?
• Are there more (or less) cars in the employee parking lot than usual?
• Are raw material shelves empty?
• Is there a “bug” affecting the wellness of the staff?
• Is there unusual “tension” in the air?
• Is another customer’s work suddenly flooding the shop?

These are the types of things that are readily observed during a Routine Supplier Visit and that are rarely, if ever, communicated electronically. They can be very important early indicators of problems in the supply chain and lead to proactive inquiries and actions on the part of the customer.

Maintain Structure, Reporting, and Management Tools

Structure, reporting, and management tools remain important even as supplier visits become routine.

Schedules, Project Management Tools, priority lists, written commitments, etc. should all continue to be utilized within the framework of Routine Supplier Visits. However, beyond these verbal and written devices the routine visits are intended to unlock the power of interpersonal relationships and visual observation.

Reversing the Point of View

A frequently positive but unanticipated result of Routine Supplier Visits is increased perspective on customer-side issues that affect supplier performance.

It is not uncommon for a procurement professional to visit a “problem” supplier only to learn about areas where their own organization is contributing to bottlenecks and delays. 

• Are PO’s and drawings being released on time?
• Are production and delivery priorities being communicated clearly?
• Are payments being made promptly?
• Are customer supplied materials arriving in time?

While these types of issues certainly can be communicated electronically, they are often more clearly and viscerally expressed by suppliers in-person, again leading to more proactive resolution and better problem avoidance.

In conclusion, Procurement Professionals wishing to most effectively manage their expanding portfolio are advised not to neglect the importance of Routine Supplier Visits while embracing the expansion of new communication technologies. “Boots on the Ground” continue to be necessary and helpful in breaking down communication bubbles, increasing pro-activity, highlighting areas for customer-side improvement, and minimizing catastrophic surprises.

Preferred Procurement Solutions

Need help? PPS can quickly get "Boots On The Ground" at your suppliers with maximum flexibility and no additions to your payroll.

Our resources are deployed across the country and internationally so we can provide localized supplier support while keeping travel cost and exposure low.

Whether you need fast resolution for urgent issues or if you would like to implement proactive measures to ensure smooth and timely deliveries -- give us a call to discuss your needs and how we can help!