Chapter 23 – Do Not Waste Your Time with a Disagreeable Supplier, Start Talking with a New Supplier Instead

After you have three or more meetings with your supplier’s decision maker without getting any results, it is time to make your own decision.

Suppliers know that it will cost you time and money to replace them and they speculate that you will not do it. Give them a surprise and move on to another supplier.

You now understand why it is always good to have several suppliers for the same products in your back pocket. If you have backup suppliers, begin talking with them immediately after you become aware that a claim will be filed with your current supplier and long before your business trip to negotiate a settlement.

Since rumors spread very fast in China, your other supplier(s) may have already learned about your problem and can come up with a fast solution for you. However, do not make the mistake of taking for granted everything that your potential new supplier is telling you. You must apply the same due diligence and maybe much tougher requirements towards the new supplier as you did with the current supplier to be sure you do not have the same problem again. Unless the supplier has been evaluated recently, a full evaluation will need to be done.

During this process, you might be surprised to learn that your new supplier can offer you a better price and better service than your existing supplier does. In the end, you may even benefit from the claim against the first factory.

Moving on to a new supplier does not mean that no action will be taken against your existing supplier. However, it should be obvious that your ability to obtain compensation or replacement of the goods will be much more difficult once your existing supplier has learned that he has been left behind. The full satisfaction of your customers at home must be your first priority. If that is best achieved by replacing your disagreeable and uncooperative supplier, you have already solved the greatest part of your problem.