Jim Thompson

Email Jim at jim.thompson@ipulpmedia.com

When many think of quality, their mind immediately goes to specifications. Is the moisture correct? How about smoothness? Coating quality? Pin holes?

These matters are all important, but even more important is the integrity of the deal.

Do you have a reputation for delivering full orders on time? Does anyone have "a thumb on the scale?"

There are many questions like this that lie outside specifications.

More...

Buyer or seller, is your "fine print" so onerous or complicated that it is filled with "gotchas?"

Do your sales representatives' verbal descriptions of your products even remotely describe what you deliver?

One clue as to your performance in this area is to carefully examine your R & A's (Returns and Allowances) by type. Some will involve specifications, but others may indicate broken promises, either verbal or written. Here you can put a monetary value on your honesty.

It is important to understand that honesty starts at home. If you do not treat your employees in an honest fashion or promote honesty between your employees, morale falls and it is more likely that you will have honesty problems with your customers and suppliers, too.

Purchasers have a role to play in honesty, too. If you, the purchaser, do not pay your invoices on the terms promised, your good suppliers may abandon you. You will be left with suppliers of last resort.

A form of dishonesty on the part of purchasers, in my opinion, are extraordinarily long payment terms. When did it become acceptable to promulgate payment terms of 90 or 120 days? I have been seeing them for fifteen years and I don't seek any business where they exist. You are not saving any money--your suppliers are charging you for this in hidden ways. Don't believe me? Offer them 30-day terms and see what happens to the prices you pay.

I know of a cross-border case where the purchaser of the services conveniently forgot to tell the supplier there would be a 10% national tariff on all their invoices. Do you think that small supplier will ever do business with them again?

Yes, specifications are important to quality, but that is only one part. Do a thorough review of your company's honesty.

Be safe and we will talk next week.

If you would like to dig a little deeper, [click here].

________

Other interesting stories: