Customers Be Damned. We're in Charge Again!

Well actually, if I believed my headline, I'd have to stop publishing this blog. But I fear there is evidence that many corporate managers still see the world this way. And now some new thinking by consulting firm, A. T. Kearney, may cause these managers to one-sided victories that in the end will be their downfall. This kind of marketplace shift calls for strategic management and careful thought about the customer experience.

A. T. Kearney has a point of view that busines-to-business customers (at least in some markets) are no longer in the same level of control over suppliers as before the gas crisis.

Kearney says that "Consolidating supplier markets, rising energy prices and the growing demand for raw materials in emerging markets have fundamentally changed the purchasing framework. Suppliers are more powerful than ever, which means buyers must adjust quickly to a new playing field."
Kearney developed The Purchasing Chessboard — a compilation of insights and experience from thousands of purchasing projects performed worldwide—to help procurement professionals master the tools of their trade. Check his PDF for a comprehensive look at macro and micro strategies to help procurement professionals improve their operations based on insights from thousands of purchasing projects performed worldwide.

I add my caution for all you suppliers who may be finding yourselves back in control of the buyer. Shortages can do that. One of the main reasons customers got control is that typically there is an over-supply of just about any product or service offered in the world. With over-supply, customers can be demanding. In under-supply, suppliers can be demanding.

But I would contend that in either marketplace situation, both suppliers and customers should be working to make each other successful. Cement very strong relationships between each other by delivering great customer experiences. That way, when supply changes in the marketplace (and it will), then your relationship can be the genesis of ongoing business that is profitable for the supplier and rewarding for the customer.

Courtesy – Dale Wolf, Perfect CEM