Proper supplier training techniques
April 20th, 2006 at 06:43am Agatha Degasperi - Iasta Europe
How to conduct a supplier training:
- Whenever possible, try to simulate a “real” event scenario. You can generally create copies of your original event to achieve this.
- Schedule a date and time when you will guide the supplier through the system.
- Leave a test auction available for a few days/weeks for suppliers who wish to continue practicing.
- Take them through the system in a logical sequence:
o Logging on
o Accessing event data
o Important documents they need to be sure to reference
o Responding to an RFI (if part of the event)
o How to ask questions when they have doubts (e-mail, forum, etc…)
o Demonstrate the “live event” experience (whether it be an auction or sealed bid). Explain the event screen and all the relevant information. Give an example of what bidding is like by also connecting as a supplier – have them submit a bid to see what happens. Then you submit a bid so they see what that looks like. Explain the various feedback options they will likely see during the event (i.e. rank only, best bid only, etc…). Show any error messages they could get (i.e. trying to bid higher than their previous bid, etc…).
o Discuss communication options during the live event (i.e. how can they get a hold of somebody if they have issues).
o Discuss alternatives during an emergency (e.g. their technology goes down)
o End with important reminders: what is due when, when they should log on to the event, and any other relevant information.
Better one-to-one or group conference call?
This really depends. There are organizations that run group conference calls where multiple suppliers can connect via a web conference and take part in a training. The advantage is that this saves a lot of time and allows you make better use of your resources for other things. However, by making it less personal it also means that you don’t get a good feel for how comfortable, willing and/or interested a supplier is in taking part in the event. In an one-to-one scenario the disadvantage is that it is much more time consuming. However, it will give you a much better view into what the supplier is thinking, and how well they understand the entire process. They will also appreciate the extra effort.
To conclude, if you have the time and resources, I would opt for the one-to-one training option. If you don’t, at least conduct the group conference calls for the benefits sited above, but be sure to include a Q&A session at the end (via a chat feature for instance) just to clarify any potential doubts.
Entry Filed under: General, Suppliers, Supply Management Best Practices, Technology / SaaS
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2 Comments Add your own
1. Grenville Lannon | April 24th, 2006 at 10:41 am
A great summary - I would also add that if possible you should specifically mimic what happens in the last 5-10 mins of the auction, how the frequency of bids may increase, what the rules are about bids received close to the original closure time, and how the supplier should be fully equipped (i.e. with data and/or authority) to react quickly and appropriately in those last few minutes - that period is not the time to try tracking down the sales director to see if you’re allowed to reduce bid price a further 5%!!
2. Jason Treida | April 26th, 2006 at 9:10 pm
That really is a great point and it is the responsibility of the eSourcing company or the buying group (who ever is conducting the event) to make sure that the suppliers are fully aware of the procedures and expectations of the event. Suppliers need to show up to a live event with their final prices in hand and the ones that do not will most likely bid incorrectly and most probably not invited to future bids if they are not able to agree to their submitted prices.
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