Why your customers are looking for new suppliers in 2020 and our strategies on how to win this business.
It is highly likely that, in this second half of 2020, you will be asked by your customer groups to join an increasing number of competitive processes. We have written this article to help you understand the drivers and aims of this new pipeline to help you achieve your bidding strategy.
The Procurement Environment
The current supply base in many industries is proving to be no longer fit for purpose in meeting 2020’s ongoing rollercoaster ride. Procurement leaders and teams I speak with, across different industries, are actively increasing their aggressive competitive actions to seek quick resolution to these current issues. Eager corporate procurement teams have finally received the green light to “go to market” rather than just renegotiate with current suppliers protecting internal stakeholders against the perceived distress of “cost of change”. Public sector procurement teams are under increased pressure to support local industries and meet a whole new set of community expectations.
Being able to understanding why the current supply base of your customer group is not fit for purpose will equip you to focus your offering on their actual needs.
Take a read through the below list to help further identify your customer’s requirements for changing supplier and determine how you can meet their needs.
Customer Drivers, Aims and Your Response
THE CUSTOMER DRIVER
WHY YOUR CUSTOMER NEEDS NEW SUPPLIERS
TO WIN THIS BUSINESS, FOCUS ON YOUR COMPETITIVE ADVANTAGE ON YOUR
Repair a damaged supply base
Current suppliers are unable to change their offering to meet updated needs
Suppliers are not financially or operationally secure
Suppliers have gone out of business
Tier 2-4 suppliers have gone out of business
Supplier management capabilities and practices
Speed of onboarding
Business continuity planning
Protect its working capital position
Holding onto cashflow is paramount
No spending unless critical and even then, no spending
The directive is to pay the bare minimum price for the bare minimum acceptable service
Price position rather than soft savings
Minimisation of organisational touch points required to deliver the solution
Minimisation of management required (i.e they don’t require headcount to manage you)
Financial health metrics
Payment terms flexibility
Meet new organisational needs
The need to deliver alternative solutions to customers which requires a new supply line
A new revenue stream so there is a urgent need for a new supplier
“Plug and play” features of reporting
Dynamic data features of reporting
Ongoing cost management
Adjust the workforce
The team is working remotely so different support services are needed
Reduction in workforce has resulted in outsourcing of activities
Supply Chain Ethics
The Pitchthis team are actively supporting organisations respond to these drivers and signals within bids and sales strategies. Get in touch with us to discuss how we will help you win this new business.