Commentary: Now is the Time to Entertain New Suppliers

It may seem counterintuitive to source new vendors during a less-than-stellar market, but this is the optimal time to bridge new relationships. The most significant gains can be found through a greater focus on testing and research, cost-saving opportunities, and thorough review.

Testing and Research – During a downturn, engineers have more time to test parts and find solutions to warranty issues. And, those focused resources on testing and research tend to lead to part consolidations and assemblies, or more efficient parts.

Generating Cost-Savings – A tough market is a buyer’s market. “When agricultural OEMs contact us during a downturn, we find that their proactive measures pay off on the buy-side,” said Nik Poulakidas, sales associate for CCTY Bearing. “Manufacturers can realize their greatest savings by working with vendors who can supply the part plus assembly. Finding partners who supply finished assemblies will lead to improved cost structures and lower engagement needs.”

Your current suppliers also may be able to provide additional parts.

Encourage engineers to identify parts that could be assembled before they arrive at your plant and invite your supplier partners to bid on it. This is also an opportunity for new vendors to submit quotes.

Thorough Review – Forming new partnerships is the first step. During a slowdown, purchasing departments have the time to fully vet the potential supplier for financial stability, quality assurance and delivery guarantees. Finding a company who freely shares scorecards and references provides peace of mind.

If you can visit the suppliers’ plant, all the better. Ask about emerging technologies and their applications in the industry. The company’s responses can reveal how forward-thinking executives are and whether they have the engineering knowledge to develop innovative products and customize them.

Nimble farm equipment manufacturers know that market leaders are made by their responses to both up and down cycles. Make the most of this downcycle by getting the most from your vendor relationships.

Contributed by CCTY Bearing