Welcome back to the sixth and final installment in a series of case studies designed to test hypotheses I have regarding how supplier size needs to be factored into sourcing and supplier management approaches.<\/p>\n
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I\u2019ve saved this case study for last because it is my favorite. This experiment is one more element of proof that what we at Next Level Purchasing teach is not just theory. If you don\u2019t avoid the mistakes that we teach you to avoid, the results are predictably poor.<\/p>\n
So this summer, we put the finishing touches on the new SPSM Certification & Enhanced Results Program. This program was an additional alternative to the standard SPSM Certification Program that we introduced on July 1, 2004.<\/p>\n
The cornerstone of the SPSM Certification & Enhanced Results Program is the SPSM Multimedia Study & Implementation Guide. Unlike old-school certification study guides which are boring 400-page manuals, the SPSM Multimedia Study & Implementation Guide is an iPod filled with over 50 video and audio clips designed to help students pass the SPSM Exam and implement what they\u2019ve learned in the workplace for better results.<\/p>\n
We decided to launch the program on October 1, 2007. The primary way we would communicate this launch was via the list for our email newsletter, which is comprised of over 60,000 opt-in subscribers.<\/p>\n
We also thought that it might be fun to do a little PR, though we had low expectations for getting any type of coverage. That presented itself as a good opportunity to continue our supplier case study experiment.<\/p>\n
I had met an independent PR person with her own firm \u2013 Cherry Communications \u2013 through an online marketing forum. We had exchanged emails in the past and I had been a subscriber to her PR newsletter and she seemed knowledgeable about the field.<\/p>\n
Shannon Cherry presented a standard scope of work and a price. The scope was:<\/p>\n
Days 1-7: Craft first draft of the press release
\nDays 8-13: Discuss release
\nDays 14-15: Revise release, if needed
\nDays 16-28: Distribute release starting with bloggers, then magazines, then newspapers
\nDay 20 til launch: Follow up phone calls (3 hours worth)<\/p>\n
The price was 3 monthly payments of $300 each or $799 up front.<\/p>\n
OK. So let\u2019s treat this like the typical tactical purchasing department. Small dollar purchases don\u2019t require competitive bidding, so let\u2019s not evaluate any other options in the market. Hey, if I pay up front, I\u2019ll save over $100. This is easy, right?<\/p>\n
So we selected Cherry Communications for this project and paid up front.<\/p>\n
The project actually started well. Cherry Communications worked with us on a fine press release.<\/p>\n
But that is where the good work ended. My gut instinct was right on the money.<\/p>\n
I don\u2019t know if Shannon Cherry thought that I didn\u2019t have contacts in the media or what, but as I contacted some of my blogger, journalist, and editor friends, I found that none of them \u2013 NOT ONE \u2013 had as much as received a press release from Cherry Communications much less a phone call. I confronted Shannon Cherry about this and she said she was behind but all of the media contacts we agreed to would be contacted within days.<\/p>\n
Again, none of them had heard from Cherry Communications. And I started having trouble reaching Shannon Cherry.<\/p>\n
Interestingly, Shannon Cherry writes a blog called Mommy, Inc. I thought that I\u2019d check on it during this time. Maybe she was ill or injured and couldn\u2019t work.<\/p>\n
But, sure enough, the blog was being updated just about daily. Sadly, those posts were about things that, to me, were far less important than Next Level Purchasing\u2019s paid project: a jambalaya recipe and Britney Spears\u2019 performance at the VMA\u2019s.<\/p>\n
So October 1, 2007, arrived. Thanks only to my own conversations with Michael over at the Sourcing Innovation blog, he posted a last-minute blurb about the launch. But in terms of PR, that was about it.<\/p>\n
Of course, I confronted Shannon Cherry about this to see what she would say. She offered to refund $300 and would provide records of the phone calls she made.<\/p>\n
I didn\u2019t necessarily think that this was a sufficient percentage of the total \u2013 especially because I expect to pay for results, not a supplier\u2019s time \u2013 but for the sake of this experiment, I accepted the offer. Shannon Cherry said that she would apply a credit to my credit card.<\/p>\n
Yet, I never had a refund posted to my card. Nor did I receive any phone records.<\/p>\n
With credit cards, getting your money back from ripoff artists is pretty easy. You just file a dispute with your credit card company.<\/p>\n
But that doesn\u2019t really help others avoid getting snookered. The Better Business Bureau is a great free service that purchasers (both C2B and B2B) can use to learn about shady businesses and to mediate disputes.<\/p>\n
So I filed a complaint with the BBB. Interestingly, Cherry Communications was already listed in their database with an unsatisfactory record due to not responding to complaints!<\/p>\n
Of course, if Cherry Communications doesn\u2019t respond to the complaint (which I don\u2019t expect them to do), I\u2019ll have the credit card dispute option.<\/p>\n
One of the most hilarious aspects of this experience was Shannon Cherry\u2019s October 9, 2007 newsletter. She always starts out her newsletters with a blurb about her personal life.<\/p>\n
She talked about being how she recently started a (free) podcast and she was transferring her (free) blog to a new server and she became a contributor to b5media\u2019s (free) blog, etc. Should a company really be investing their resources in free offerings when they can\u2019t serve their paying clients? Perhaps Cherry Communications is more of a hobby than a business.<\/p>\n
So Next Level Purchasing students: did you see the purchasing principles that were violated in this experiment?<\/p>\n
OK. So that concludes the series of case studies. In the near future on this blog and in PurchTips, I\u2019ll be summarizing the guidelines that these case studies demonstrated\/violated.<\/p>\n
Stay tuned!<\/p>\n","protected":false},"excerpt":{"rendered":"
Welcome back to the sixth and final installment in a […]<\/p>\n","protected":false},"author":12,"featured_media":4024,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2376","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"\n