Ask questions now to save heartburn later.
I have been selling PCBs for over 30 years and have numerous longtime customers with whom I’ve developed close friendships.
But as with any relationship, there are ups and downs. Given the dynamics involved in being a buyer under pressure to obtain good quality boards at the best possible price, or in my case, being a supplier expected to ensure those perfect PCBs are delivered on time and with no problems, things can sometimes get testy.
Frustrations can arise, especially when the supplier needs to maintain a profit margin either through raising prices or increasing the quantity of boards purchased, while the buyer is expected to constantly cut costs without hurting production.
When a customer relies heavily on a particular supplier and that supplier faces circumstances beyond its control that affect pricing, delivery or quality, the relationship can turn contentious and must be carefully managed to avoid damaging your supply chain.
Here are several love-hate scenarios common to our industry:
Too many engineering questions (EQs) from supplier. Every buyer would like to place a purchase order with no questions asked and get on-time delivery and perfect boards. But the reality is that the PCB is custom-made. Quality is directly proportional to the number of EQs received. Discouraging questions lead to dangerous assumptions and set up the supplier for failure. Buyers should be willing to help their suppliers. Sure, time is of the essence. But it is better to have correct boards arrive late than on time and wrong.
When a supplier communicates bad news. No one likes bad news. But a supplier delaying bad news is worse. Buyers need to encourage suppliers to communicate bad news immediately. Buyers need to be thankful for this heads-up from the supplier, as it gives them an opportunity to lessen the possible blow to the production schedule. Likewise, the supplier must constantly follow up with the buyer until the situation is resolved. No buyer I know of has ever died from hearing bad news about an order. Poor communication sure kills business, however. I’ve known quite a few buyers I call “screamers” who discourage all bad news. They deny themselves the opportunity to be proactive instead of reactive.
Buyers who do not give feedback. The phrase “no news is good news” does not apply to our industry. While I don’t think buyers should discourage bad news about their orders, I do like it when buyers feel free to openly communicate their concerns. If they tell me what they need, I will do all I can to meet those needs. I can also feel free to tell buyers what I need from them to get the job done. Dialogue is great for strengthening relationships. Of course, it is best to communicate in a manner conducive to business. I prefer a buyer who is blunt, however, even to the point of rudeness, over one who clams up until it’s too late to fix a problem.
Suppliers who do not make suggestions. The days of having physical drawings and artwork on hand for review are gone. In today’s digital world, many buyers, through no fault of their own, do not understand the complexities of making a circuit board. Unfortunately, many buyers don’t know what they are buying, or how they could have bought differently and made a better deal for their company, both in cost and for better assembly throughput. I can’t tell you how many times a previous supplier left one of my buyers hanging. Is it a sales technique, product ignorance, or plain laziness? Regardless, the supplier needs to be asking questions and volunteering solutions even when – especially when – buyers are unaware of what they’re facing.
Slow payment by buyers. I have put customers on shipping or credit hold, only to have buyers’ bosses call me fuming that I dare hold the order. I always ask why it’s unacceptable to deliver an order weeks late, but it seems to be okay to make payment weeks late. Suppliers should never have to apologize for asking for timely payment, especially when quality goods were delivered on time. Also, a customer who pays timely is more easily accommodated by the supplier when their buyer is demanding.
The relationship between buyer and supplier is dynamic and can sometimes become tense. That tension can be managed through consistent communication. Encouraging an open dialogue with clear expectations in good and bad times builds trust, as does a supplier steadily offering on-time delivery of quality product. When buyer and supplier collaborate, they can find solutions to the many issues that will arise, and this strengthens the partnership and the supply chain.
Greg Papandrew has more than 25 years’ experience selling PCBs directly for various fabricators and as founder of a leading distributor. He is cofounder of DirectPCB (directpcb.com) and can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it..
