Against the backdrop of a global economic downturn and continuous US dollar interest rate hikes, customers are not only pursuing quality, but also have higher demands on pricing.
They hope to gain greater competitiveness by lowering costs.
Among the customers we hosted at the 2024 German trade fair,
over 60% were general managers and procurement managers from end-user companies.
They are seeking one-stop procurement and technological innovation to enhance their competitiveness - these customers are our strategic target clients.
However, there are also some price-conscious customers in the market
whose entire competitiveness comes from low prices, lacking their own unique advantages.
In order to survive in the fierce market, they have to frequently change suppliers.
This practice may have the following impacts on the enterprise:
In order to seize the market, some low-price suppliers have deficiencies in raw material selection, production process technology improvement, and quality control, thereby providing products of uneven quality.
Unstable product quality can have a disastrous impact on industrial products.
In addition to the need for workers to shut down the machine to troubleshoot faults, which affects production efficiency, it can also disrupt the original logistics management, production planning and other processes, leading to a decline in internal operational efficiency, and in turn affecting customer relations and brand influence.
It takes time to understand the production qualifications and background of new suppliers, communicate about product technology, delivery, after-sales service and other issues.
Although the financial benefits are obtained in the short term due to price advantages, it is a huge waste of one's own time. If there are customer complaints about product quality later, and the cooperative suppliers do not have a sound after-sales system, all the losses may have to be borne by the company itself.
Affected by the domestic price war and the vicious competition within the industry, some companies have started to accept orders in violation of business principles.
These companies will gradually encounter operational problems, and the orders they have procured may not be able to be shipped or cannot be shipped on time, affecting your commitments to target customers and posing potential risks.
In the past 15 years of operation, we have encountered many similar customer cases, including one leading Dutch industry enterprise. They would send inquiries to 3-4 Chinese suppliers each time, solely focusing on the lowest price and the most favorable payment terms, completely disregarding quality factors. Due to the mismatch in values, we eventually ceased cooperation. Afterwards, this company lost its original customer
base due to an annual inventory order quality issue, and was eventually acquired by a German company.
Cooperating with stable suppliers not only ensures stable and reliable product quality, as well as timely and accurate delivery, but also creates more room for cost optimization, promotes collaborative technological innovation, and fosters long-term business trust.
This not only helps reduce various risks in supply chain management,
but also provides a solid foundation for the business development of the enterprise.
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