A Purchasing Agenda for Successful Sales Calls

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A Purchasing Agenda for Successful Sales Calls

• Richard J. Grosso, III, A.P.P. C.P.M.
• 15 January 2009

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Credit for outline

• The seed of this presentation was provided by Ms.
  Patti Greer, C.P.M. who was, at that time,
  Purchasing Manager of E-One in Ocala, FL
• This simple, basic business meeting is often
  mismanaged - which results in lost opportunity
  for both represented organizations

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Introduction

• As procurement professionals each of us will
  regularly spend time listening to various sales
  pitches, some planned, others unplanned
• We need to treat the time spent with Sales folk
  as valuable opportunity and reap as much as
  possible by planning and being organized
• Sales folk have specific prescribed objectives
  for effective sales calls we do also !!

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Sales Objectives Sales Meeting

• Solicit new business
• Increase existing business
• Increase profit opportunity
• Understand future get forecasts
• Learn about partners/subsidiaries
• Develop and/or deepen rapport
• Discuss improvements in relationship

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Purchasing Objectives Sales Meeting

• ID what else is on the wagon
• Increase depth of supply opportunity
• Cost reduction opportunities
• Learn Lead time/Cycle Time issues
• Part of problem solving scenario
• Deepen rapport
• Learning experience
• Cost reduction opportunity

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Planned Sales Visits or Meetings

• Planned meetings require preparation resulting in
  written agendas which
• Make effective use of time
• Help make us appear professional
• Keep us on track
• Otherwise we need to shift to prescribed generic
  planned outline more later

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Unplanned Sales Visits

• Someone elses failure to prepare should not
  prevent us from being effective
• Unplanned meetings are often a distraction or
  disruption of our schedule
• Display proper attitude an opportunity, however
  challenging to your schedule
• Should follow a prescribed generic outline
  (create a form) to make effective use of our time

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Generic Meeting Format

• Create an outline,
• Have prints available
• Use information (ten points) see slides that
  follow
• Use form for meeting notes - Copy potential
  internal customers, users

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Legal Issues

• Is your company prepared with a Confidentiality
  Agreement?
• Present and exercise same
• Do you have a Welcome booklet or brochure with
  basic
• contact information
• statements of company policy and ethics
• share mission statement, vision and goals
• more later

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Basics

• Three Types of Sales Calls
• First (Initial) Call the sales representative
  shows up on the doorstep with or without an
  appointment
• Routine Call supplier is already doing business
  and is touching base
• Problem Call one of us has called and asked to
  a meeting to resolve an issue

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First or Initial Sales Visit

• Here are some basic questions which will help us
  both decide what is possible beyond our first
  date followed by reasoning for the query
• Who is the supplier? (Full legal name and
  ownership details for research)
• What is their role (manufacturer, distributer,
  jobber, manufacturers representative)
• What are their products? Notwhat did they think
  they could sell you, what is the breadth of their
  line? Why limit success to eithers ignorance?

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First or Initial Sales Visit

• What are their annual sales? (to help determine
  size stability of business)
• Review the geography of their business elements
  offices, warehouse, service facilities, sales
  territories (to help understand role and
  potential with you your partners as well as
  identify logistical issues
• Who are their principle customers? (may need for
  reference, could be your competitors, indicating
  need for careful use of propriety information)
• Who referred them to your company? (may have been
  your CEO or they may have done research)

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First or Initial Sales Visit

• Explain your purchasing policies and procedures -
  time for the Confidentiality Agreement if not
  already done. (sets the tone of the future
  relationship, professional, cordial, opportunity
  seeking)
• Identify basic terms conditions of sale (for
  benchmarking and targeting opportunity, prevent
  abuse)
• Identify next step (No thanks, arrange or refer)

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Share Supplier Welcome Booklet

• This is an opportunity for you to set-the-stage
• Often now part of website
• Introduce your organization and players
• Establish minimum expectations
• Measurements, report cards
• Broach difficult issues
• Cash flow issues, stage preferred payment terms,
  return policies, etc.
• Insure discussion on potential issues
• Lead times, dependability, consigned inventory,
  etc.

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Routine Call current supplier

• Understand joint role responsibilities
• Develop a good working business relationship
  rapport a significant, often misunderstood
  responsibility for a procurement professional -
  to help assure a continuity of supply, develop
  the relationship
• Identify when to involve others
• Limits of authority, implied and express

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Routine Call current supplier

• Treat the relationship with respect
• Develop a written agenda, shared in advance of
  the meeting
• Prepare for the meeting (i.e. what position
  improvement should you be asking for? Id like
  to say that I never met with a supplier without
  asking for something!)
• Unit price, delivery shipping costs, lead time,
  terms of payment, consigned inventory,
  exclusivity, etc.
• Invite appropriate functional representatives

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Routine Call current supplier

• Include the following agenda items as applicable
• Review outstanding bids/quotes
• Review open orders/backorders
• Give supplier opportunities to present new
  products/services
• Forecast for future business volume
• Make sure supplier knows how product is being
  used (improves warranty position)
• Discuss any organizational changes and impact on
  relationship
• Seek frank discussion on how to improve business
• Set the tone of expectation (we seek ideas from
  you, we seek compliance)

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Problem Sales Visit or Call

• Written advance agenda is absolute requirement
• State purpose of meeting in general terms
• State expectations for time (identify,
  understand, solution)
• Have internal customers prepared to attend
• Allow supplier to explain their understanding of
  issue first
• Explain your position if it differs from supplier
• Discuss possible solutions (include your
  preference)
• Discuss potential lack of resolution satisfactory
  to both parties
• Decide on how to decide
• Identify next step(s)
• Follow up

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Summation

• Make effective use of the time
• Plan ahead
• Keep all appointments
• Minimize chit-chat
• Ask Questions
• Share pertinent information
• Avoid interruptions
• Dont play games
• Take notes
• Create supplier file with agendas/minutes/notes