GPI 425 –Put purchasing next to sales, watch them talk, compare notes and turn vendors into customers.

There are many potential opportunities for a company’s vendor to ultimately become a customer.  Not all companies offer services or products that are needed by every other company, but there are many.

Do the following and hopefully your sales personnel will follow up.

  • Physically place your purchasing department next to your sales department.
  • Teach your purchasing department personnel to train their potential vendors what your company does. Have literature describing your products or services and give clear examples of the projects and the wide variety of industries in which your firm operates.
  • You want your vendors to know everything your firm does in order for them to detect any common areas of interest or need.
  • Once new vendors are added, your sales personnel should investigate these vendors and all of their sister divisions and branches and see if there are sales opportunities to pursue.
  • A new vendor will most likely pay more attention to your firm’s sales pitch versus another unrelated party.
  • Where there are large economic opportunities; both sales and purchasing managers need to sit down and work out economic savings for both companies which will enrich both bottom lines.
  • One company will offer a discount on its goods and services while receiving a discount on its purchases from the other.
  • Offer to trade accounts payable and accounts receivable balances (offset) and issue minimal checks occasionally to bring both sets of books in line. This will minimize cash flow between the two firms.
  • Print off a list of vendors and dollars spent and provide it to the sales department to analyze and identify potential customer opportunities.
  • Print off your customer listing with dollars sold and ask your purchasing department to buy from these customers wherever possible. When that occurs, make sure your sales staff is aware of those purchases in order to use that for enhancing the relationship between your firm and your customer/vendor.