VeeJay
7/13/2006, 01:39 PM
We've had this particular supplier doing business with our co. since before I got here. This supplier is basically a one-person operation, and serves as a "middleman" and actually owns no facilities, equipment, etc. Everything he sources from other people.
Lately, the last few months, the quality of goods he is delivering to us has been horrible. He deals in low priced products, and is basically a shoestring operation. I found out this morning that he owes several producing companies thousands and thousands of dollars. In fact, one thing that brought this about was that our purchase order was not going to be shipped due to his non-payment. So my goods were held up at a loading dock.
So the guy who owns the plant came to us this morning to explain what the deal was, and offered to do business with us directly, resulting in the cutting out of this middleman, and saving us around 20% on the cost of product.
So I had to call the middleman, an older guy in his 60's, and tell him to cancel all our backorders, and that we have elected to no longer do business with him. That involves a lot of busy work on our side, approving a new supplier, changing labels and designs, etc. But the hardest part was telling this old guy he's out of business.
He's called me three times already, since then, saying anything possible to salvage his business. But, it's the same story - everything is always the fault of someone else. The bottom line is, the quality of his product (bottled water) hasn't improved and we've been patient with him and stood by him (and listened to his excuses) for about three months.
One thing that cemented this decision was the call last week I got from the older guy yelling and screaming at me (I'm the customer), because of things our logistics people did that HE claims caused damage to his product. We billed him several thousand dollars for all the accumulated damaged or unsaleable product, and he went ballistic when he got the bill. For this guy not to even have $2500 available as an open line of credit for his business is not someone I need to be screwing around with.
I hate to put a nail in this guy's coffin, but on the other hand my life should improve now that I won't have his problems as my problems.
Lately, the last few months, the quality of goods he is delivering to us has been horrible. He deals in low priced products, and is basically a shoestring operation. I found out this morning that he owes several producing companies thousands and thousands of dollars. In fact, one thing that brought this about was that our purchase order was not going to be shipped due to his non-payment. So my goods were held up at a loading dock.
So the guy who owns the plant came to us this morning to explain what the deal was, and offered to do business with us directly, resulting in the cutting out of this middleman, and saving us around 20% on the cost of product.
So I had to call the middleman, an older guy in his 60's, and tell him to cancel all our backorders, and that we have elected to no longer do business with him. That involves a lot of busy work on our side, approving a new supplier, changing labels and designs, etc. But the hardest part was telling this old guy he's out of business.
He's called me three times already, since then, saying anything possible to salvage his business. But, it's the same story - everything is always the fault of someone else. The bottom line is, the quality of his product (bottled water) hasn't improved and we've been patient with him and stood by him (and listened to his excuses) for about three months.
One thing that cemented this decision was the call last week I got from the older guy yelling and screaming at me (I'm the customer), because of things our logistics people did that HE claims caused damage to his product. We billed him several thousand dollars for all the accumulated damaged or unsaleable product, and he went ballistic when he got the bill. For this guy not to even have $2500 available as an open line of credit for his business is not someone I need to be screwing around with.
I hate to put a nail in this guy's coffin, but on the other hand my life should improve now that I won't have his problems as my problems.