Welcome back to the fourth 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. In today\u2019s case study, we\u2019ll be exploring some work we\u2019ve done with Office Depot.<\/p>\n
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The background of this case study goes back to early 2004. At that time, we were preparing for the July 1, 2004 launch of the SPSM Certification.<\/p>\n
Because of the challenge and prestige of the SPSM Certification, we wanted to award our successful candidates with something more than just a paper certificate. Part of becoming certified would involve candidates receiving a beautiful glass engraved award.<\/p>\n
Honestly, before we launched the SPSM Certification, we didn\u2019t know how successful it would be. We didn\u2019t know if we would even have to order one of these awards.<\/p>\n
Now, we wanted a really nice award to recognize a really nice achievement. But most of the suppliers we talked to said \u201cjust go look at our Web site.\u201d<\/p>\n
I love Internet shopping. But, when buying \u201cluxury\u201d items, it really helps to see things at a higher than 72 dpi resolution and to speak with someone who knows the product.<\/p>\n
Fortunately, Gerry Wallace \u2013 a manager of promotional products for Allied Office Products (which has since been acquired by Office Depot) \u2013 was willing to spend time with us. In fact, I visited his office for over an hour during which he made sure to ask the right questions and to discuss all of the options so that we got it right.<\/p>\n
I was so impressed that Gerry would spend his time with a client that may only end up spending $70 for a prototype. Fortunately for both of us, the SPSM Certification has become hugely successful and we\u2019ve purchased an unbelievable amount of awards since then!<\/p>\n
The arrangement has worked out great. We and our students are so pleased with the high-quality awards that we have not changed the design in the years since introducing the SPSM Certification.<\/p>\n
Sure, there has been a bump in the road along the way. That bump related to how we manage the shipping of the awards.<\/p>\n
Basically, we have Office Depot ship the awards directly to our students. This minimizes several things: the cost of shipping, the cost of handling, the risk of the awards being broken due to handling, and the time it takes to get the award in the students\u2019 hands.<\/p>\n
But as we started to order multiple awards per day, on a few occasions the awards were shipped to the wrong students when we ordered those students\u2019 awards on the same day. This was frustrating to me.<\/p>\n
We strive to not just provide our students with a certification \u2013 we strive to deliver an \u201cexperience\u201d filled with joy, pride, and appreciation. Eagerly anticipating your award only to find someone else\u2019s name on it is a big disappointment. Then having to send it to someone else isn\u2019t much fun.<\/p>\n
In my purchasing experience, I\u2019ve seen problems like this reported to a sales person: the sales person gives lip service about the problem being fixed, the problem is never investigated, and the problem recurs. Fortunately, there was real action and not lip service with Office Depot.<\/p>\n
Gerry visited our offices, talked through the problem, and went to work internally. That was about a year ago. We haven\u2019t had a similar problem since.<\/p>\n
As the SPSM Certification continues to grow, our volume of awards does, too. As a part of the experience that we provide to our students, I actually consider these awards a strategic category for us.<\/p>\n
So it\u2019s the ultimate situation when sourcing a strategic category to have a supplier spend the time up front to make sure things are perfect despite no guarantee of any type of volume and then effectively and immediately address the invariable problems that arise during a long-term relationship. Office Depot in general and Gerry Wallace in particular have done a great job of supporting us!<\/p>\n
OK, so we\u2019ve covered case studies of four large companies so far in this series. Next up, we\u2019ll be exploring supplier management and sourcing strategies with small suppliers. As I\u2019ve mentioned in previous installments, I\u2019ll be holding off on summarizing the lessons and guidelines from these case studies until I\u2019ve finished the series.<\/p>\n
Stay tuned!<\/p>\n