E-Sourcing Forum » Building Supplier Outreach Strategies

Building Supplier Outreach Strategies

June 1st, 2010 at 09:35am David Bush - Iasta

Incumbent and new suppliers can sometimes be reluctant with a reverse auction. The most important advice to remember when dealing with these types of supplier situations is: communicate, communicate, and communicate.

This point cannot be stressed enough. Many feel that by utilizing an online sourcing tool, all communication only takes place electronically. The e-Sourcing tool should facilitate communication, not replace it. It is important to still maintain professional relationships with your bidders and stakeholders through one-on-one meetings or phone conversations. Before initiating any online sourcing initiative, suppliers should be notified about what they will be receiving and what to do with that information. This also gives you the opportunity to minimize any fears and preconceived notions they may have about online sourcing technologies. The Sourcing Team should also properly monitor suppliers’ progress on different tasks set out for them to do, and follow up with a phone call whenever they are not being responsive. This will ensure maximum understanding and participation from suppliers.

Here are some key times that you should communicate with your suppliers.

• before an invitation to participate in an auction, notify them of the upcoming event
• after the invitation is sent, confirming the supplier received it and asking if they have any questions
• when there are dramatic changes to the RFQ including new deadlines, dates or specifications
• 24 hours prior to the auction to verify participation and answer any open questions
• during the auction if there are noticeable issues with a supplier (like not logging in, logging off too soon)
• after the auction to communicate the award decision

Clarity and communication are keys to not only a successful auction, but to maintaining strong relationships with potential suppliers who don’t win.

Simple steps like these will drastically reduce the risk of event day issues and will keep suppliers interested in your business later, as they will feel the process was fairly managed.

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Entry Filed under: Functionality, Supply Management Best Practices, Technology / SaaS, e-RFx

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