There are two aspects to being a good buyer in our business. In the first instance it refers to our relationship with our suppliers and, secondly, how we recruit and retain staff.
As far as our supplier strategy is concerned this example illustrates the point: A great business that I have had the fortune of dealing with will be seen from an outside perspective as a traditional "trader". It imports goods and sell them locally, focusing on lower margins but higher volumes. Nothing wrong with this, but the interesting aspect of this business is that it does not regard itself as a great seller, but rather a great buyer In other words, its ability to negotiate great deals places it at a competitive advantage and enables it to sell its products well.
How can other businesses learn from this approach, even if we are not necessarily in the business of being traders? I think that one of the lessons is that you can give your business a competitive edge simply by ensuring that you buy well from your various suppliers.
This buying well approach obviously includes negotiating the best price from your suppliers, but it can encompass so much more. Having a partnership approach with all your suppliers; taking them on board as an important, relevant and valued partner, rather than as a mere supplier, can enhance their value to your business and, in essence, extend the capabilities of your own team.
You can, therefore, ensure that you are an expert in all aspects related to your business without necessarily having to employ the expertise.
Another way to buy well is to have a relationship with your suppliers in which you are willing to show mutual forgiveness and enter into a sustained long-term marriage with both parties committing to working together rather than a one-night-stand approach. This approach initially requires taking the time to ensure that effective communication has taken place, mutual expectations have been clarified and sharing of goals has been talked about, but in the long run this is easier (and often more cost-effective) than jumping ship at the first sign of trouble.
Another advantage of this approach is that you will find that when you treat your suppliers as partners rather than as second-class citizens, they become a loyal advocate of your business, a second sales team who can enhance your business through their word-of-mouth advertising to other clients. They will also be inclined to go out of their way to save you time and money, give you the best advice and generally assist you to grow your business.
In the same way, being a good buyer also refers to our ability as business managers to appoint the right team members. If we buy the right skills at the right price at the right time, we can enrich our teams. If we go the extra mile and ensure that we buy the right attitude as well, the fit between the company culture and values and the prospective employee's attitude profile will make for a marriage made in heaven.
In our recruitment process it is critical to assess a candidate's attitude and not just his technical skills. It has been said that we employ people for their skills but fire them for their attitude and this is so true. A person does not forget how to balance the books, or type up a report. It is a negative attitude that results in time-management issues, conflict with team members or a lack of performance, causing many a management and HR headache.
Buying well in terms of recruitment and retention also means that we have to work on the relationship from our side. Our on-boarding process becomes critical to ensure that the new employee is accepted and welcomed into the fold as quickly as possible. Too often we are too busy and just want the employee to hit the ground running, but we do not invest enough time into welcoming, introducing and training the new employee.
Companies that fail to impress new staff risk losing them quickly with research pointing to 25% of new starters deciding to leave their new company within the first week. This increases to 47% deciding to leave after three months with a poor induction process being blamed for those wishing to leave early. (Source: Society for Human Resource Management,USA.)
After the initial on-boarding process it is also our duty to engage continuously with our employees, support them with training and give them regular feedback on their performance.
