Procurement is more than just acquiring goods or services—it's a strategic game of value co-creation between businesses. Have you ever wondered what makes a "premium" customer in suppliers' eyes? Is it merely about order volume and profit margins? A revealing case study shows that becoming an exceptional client goes far beyond transactional relationships, requiring communication, understanding, and mutual growth.
Case Background: Turning Conflict into Collaboration
A procurement executive at a manufacturing company found their relationship with a regional industrial distributor deteriorating. Frequent delivery delays and unresponsive sales managers threatened what had been a stable partnership. To resolve the impasse, the procurement leader requested a high-level meeting with the distributor's president.
Surprisingly, the president considered this manufacturer a core client—with growing annual business volume, reasonable profit margins, and particularly close collaboration on new product development. While the procurement executive remained dissatisfied with current service levels, data confirmed the company ranked among the distributor's top ten accounts. This realization prompted the procurement leader to ask: "How can we become a better customer?"
Process Improvements: Starting with Internal Changes
Through candid discussion, the procurement executive learned about operational challenges facing the distributor. He implemented several internal process improvements:
- Extended lead times: Advanced planning by two weeks to accommodate supply chain constraints
- Standardized order quantities: Aligned purchase volumes with industry-standard packaging to minimize repacking costs
- Documentation optimization: Consolidated duplicate part numbers and established consistent naming conventions to reduce ordering errors
- Safety stock increases: Added modest buffer inventory to account for system discrepancies
These changes simplified the distributor's order fulfillment while improving the manufacturer's own efficiency. The procurement executive recognized that becoming a better customer begins with optimizing internal processes to support supplier success.
Frontline Engagement: A Transformational Lunch Meeting
The distributor president acknowledged challenges with his sales team's customer service approach. He invited the procurement executive to meet directly with frontline staff. The manufacturer brought their production planner to the lunch meeting, where they:
- Presented their business context and how they used the distributor's products
- Shared objective performance data showing service shortfalls
- Reiterated the question: "How can we improve as your customer?"
This transparent dialogue helped the sales team see beyond account numbers to the real operational impacts of their service. The group collaboratively developed solutions including dedicated account representatives and improved communication protocols. Service levels improved dramatically within days.
Three Pillars of Supplier Excellence
This experience revealed three critical elements for becoming a valued customer:
1. Eliminate Arrogance
"The customer is always right" doesn't justify unreasonable demands. Professional courtesy—using "please" and "thank you," showing respect regardless of order size—builds goodwill that pays dividends in service quality.
2. Listen Actively
Many suppliers hesitate to critique client purchasing practices. Proactively ask for feedback with questions like "How are we performing as your customer?" This demonstrates commitment to mutual success and surfaces improvement opportunities.
3. Pay Promptly
Timely invoice payment remains the most fundamental marker of a good customer. Ask suppliers "Are our payments processing satisfactorily?" to confirm your financial reliability and maintain priority status.
Conclusion: The Path to Mutual Success
Becoming a premium customer requires continuous effort across relationship management, process optimization, and financial reliability. Companies recognized as valuable clients gain competitive advantages through preferential service, innovation collaboration, and supply chain resilience.
Additional Strategic Considerations
- Long-term partnerships: Move beyond transactional relationships to strategic alliances that withstand market fluctuations
- Information sharing: Provide suppliers with demand forecasts and production plans to enhance their planning
- Joint innovation: Collaborate on product development and process improvements
- Performance evaluation: Regularly assess supplier capabilities while welcoming reciprocal feedback
As procurement evolves, leading organizations will increasingly focus on digital transformation, sustainability, and agile supply chain practices—all built upon strong supplier relationships established through the principles demonstrated in this case.