The suppliers, partners, and vendors you bring on to help you with your product development and manufacturing endeavors will determine the success or failure of your product. Don’t underestimate the importance of finding a supplier that not only is the best in the world at what they do but also fits into the culture of your organization. Follow the four simple tips to a successful supplier relationship and save money, time and prevent a supplier disaster.
1. Know Who You’re Hiring
Never get into a supplier or vendor relationship blindly without knowing the details about the team you are trusting to develop, design, or manufacture your product.
The best way to find a supplier or partner is to:
• Ask your trusted network for referrals.
• Do your due diligence on the supplier by speaking directly with them, visiting them if possible, and asking for examples of their work.
• In the case that you find the supplier through the internet, take your time to get to know them, closely evaluate how they work with new customers, and try to speak with some of their references.
• Only work with suppliers who have proven to be the best in the world doing what you need them to do. Many customers incorrectly identify suppliers that do not specialize in solving their needs. Do you need low-volume plastics molding? If so, do not approach a plastic molding supplier who normally handles large production volumes.
• Are you an entrepreneur or micro-enterprise who needs help with product design and development? Don’t hire an engineering services company whose customers include the largest companies in the world.
!! Don’t rush into a new supplier relationship until you are sure they are the right partner !!
2. Know Who’s Doing What
Supplier relationship issues will arise if the roles and responsibilities are not clearly established. Nothing is worse than waiting weeks for a supplier to provide samples only to learn that they were expecting you to provide 2-dimensional drawings for them to use. There are advanced methods of documenting and tracking responsibilities such as the responsibility assignment matrix RACI but these methods are not always required. Simply put, you should work with your vendor to document what they will do for you and what you are required to do for them.
3. Know What You’re Getting
It is extremely important to properly document what you’re procuring from your supplier or vendor so that there are no surprises when product arrives at your front door.
There are two types of documentation that should be established.
• The first is engineering documentation that specifies exactly how the product looks and feels (form and fit). This includes 2-dimension prints, 3-dimensation computer aided design (CAD) files, electrical schematics, printed circuit board Gerber files, and bill of materials (BOM).
• The second type of documentation required specifies how the product operates (function). This product specification calls out the functional aspects of the product such as basic function, acceptable operating conditions, required maintenance.
When developing your product with your supplier, you must also be sure to document and solve all issues found with prototypes and samples provided. Be clear to communicate the product issues with your supplier and work on a corrective action plan to resolve the problems. The supplier should provide new prototypes or samples with the issues resolved prior to moving into final production.
4. Be a Team Player
Finally, remember that a successful supplier relationship requires teamwork and a close relationship. Teams win and lose TOGETHER, not as individuals. Inevitably, issues will arise when working with external suppliers and vendor. When individuals start pointing fingers to blame, the trust system shuts down and everybody goes into protectionist mode. When your supplier or vendor understands that there is co-accountability to the success or failure of the product, they will be much more willing to make the extra effort to solve issues.
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Need more information? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com
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