Although commonly referred to as the Golden Rule the phrase "Do to other as thou wouldst they should do to thee, and do to none other but as thou wouldst be done to" has its earliest discovered origins with Socrates, but it is mostly quoted from the Bible (book of Luke).There were a number of instances recently from a personal perspective which caused me to think of it in the perspective of supplier relationships.
Last week the good and the bad of this rule were evident at the Eagles concert in Toronto. For those of you who have been on a planet far, far away for the last few decades, the Eagles are an "uber" band, which in the '70's attained greatness from their rock/folk mix of music. Their music today, is as great as it was back then, which is the reason for the band's longevity in the hearts and ears of many.
The Eagles gave what can only be spoken of as a generous concert,
giving their audience more than I have experienced any other rock band provide. There was no opening act -- they came on stage at 830pm and only with a short intermission in between, played until close to midnight. The fans felt appreciated -- that is this was not a band that acted as if the audience was privileged to see them perform -- quite the opposite -- the Eagles performed as if it was a privilege to be on a stage in front of the thousands of appreciative fans. Regardless of the cost of the tickets (which was hefty) I left with a warm glow, thinking it was worth it. The Eagles "did unto others, as they would have done unto them", and it is this approach which will ensure their long term viability.
On the other hand, I went to Morton's Steakhouse in Toronto that same week, where from the moment I walked in, I felt like I was being treated as if I should consider myself lucky to pay $50 for a steak and then the additional $10+ for potatoes, vegetables etc. It was a "hurry up" feeling, where the waiter was hovering to take the order (even though we told him we weren't in a hurry) and then the salad plates were taken and the full meal plopped down in front (which makes you wonder how long it was sitting
in the warmer before being served). When the time came for coffee, we ordered some and with the coffee, came the bill -- no further request if we wanted more coffee or anything else. So a $200+ meal was over in less than an hour and a half. As opposed to the Eagles concert -- I felt that I was unappreciated and although my presence and that of other patrons at Morton's would inevitably ensure their success, they seemed oblivious to that fact -- needless to say, they won't be seeing me anytime soon and furthermore, I would suggest others take a pass.
So how does this relate to the world of procurement and supply chain? It is in the way firms treat their vendors and vendors treat their customers. Too often large firms feel
that it is OK to "beat their suppliers up" (yes this is a term I have heard time and time again) believing that in doing this you demonstrate somehow your superiority -- when in effect you are only demonstrating you lack of understanding how important the vendor is to your success. That is not to say that you shouldn't get the best deal possible -- but it does mean understanding the total relationship (because if you "beat" suppliers up -- be assured they will nickel and dime you when you are in need and when they have a chance to recoup they will). The other aspect of this is that it comes back to haunt you -- because the Golden Rule -- Do unto others.... -- was not adhered to and in the end -- well, look at some of the major companies that are in severe financial difficulties now.
The same goes for vendors who have monopolies today, but again, as we have seen time and time again -- that also doesn't last -- and at the first opportunity a hostage customer will make the leap to a new competitor. The arrogance of some suppliers and their lack of flexibility because they are the only supplier of software, product etc. (you know who you are) results in a lop-sided arrangement. Many customers and suppliers talk about partnership -- but most have no clue as to the true meaning -- but it sounds good -- so they continue to pretend.
So it all comes down to what is effectively a truism --"Do unto others, as you would have them do unto you". It doesn't just work for rock bands and restaurants, but in every day business (and personal) transactions.
giving their audience more than I have experienced any other rock band provide. There was no opening act -- they came on stage at 830pm and only with a short intermission in between, played until close to midnight. The fans felt appreciated -- that is this was not a band that acted as if the audience was privileged to see them perform -- quite the opposite -- the Eagles performed as if it was a privilege to be on a stage in front of the thousands of appreciative fans. Regardless of the cost of the tickets (which was hefty) I left with a warm glow, thinking it was worth it. The Eagles "did unto others, as they would have done unto them", and it is this approach which will ensure their long term viability.On the other hand, I went to Morton's Steakhouse in Toronto that same week, where from the moment I walked in, I felt like I was being treated as if I should consider myself lucky to pay $50 for a steak and then the additional $10+ for potatoes, vegetables etc. It was a "hurry up" feeling, where the waiter was hovering to take the order (even though we told him we weren't in a hurry) and then the salad plates were taken and the full meal plopped down in front (which makes you wonder how long it was sitting
in the warmer before being served). When the time came for coffee, we ordered some and with the coffee, came the bill -- no further request if we wanted more coffee or anything else. So a $200+ meal was over in less than an hour and a half. As opposed to the Eagles concert -- I felt that I was unappreciated and although my presence and that of other patrons at Morton's would inevitably ensure their success, they seemed oblivious to that fact -- needless to say, they won't be seeing me anytime soon and furthermore, I would suggest others take a pass.So how does this relate to the world of procurement and supply chain? It is in the way firms treat their vendors and vendors treat their customers. Too often large firms feel
that it is OK to "beat their suppliers up" (yes this is a term I have heard time and time again) believing that in doing this you demonstrate somehow your superiority -- when in effect you are only demonstrating you lack of understanding how important the vendor is to your success. That is not to say that you shouldn't get the best deal possible -- but it does mean understanding the total relationship (because if you "beat" suppliers up -- be assured they will nickel and dime you when you are in need and when they have a chance to recoup they will). The other aspect of this is that it comes back to haunt you -- because the Golden Rule -- Do unto others.... -- was not adhered to and in the end -- well, look at some of the major companies that are in severe financial difficulties now.The same goes for vendors who have monopolies today, but again, as we have seen time and time again -- that also doesn't last -- and at the first opportunity a hostage customer will make the leap to a new competitor. The arrogance of some suppliers and their lack of flexibility because they are the only supplier of software, product etc. (you know who you are) results in a lop-sided arrangement. Many customers and suppliers talk about partnership -- but most have no clue as to the true meaning -- but it sounds good -- so they continue to pretend.
So it all comes down to what is effectively a truism --"Do unto others, as you would have them do unto you". It doesn't just work for rock bands and restaurants, but in every day business (and personal) transactions.
An update: As is my nature I sent an email complaining about my treatment at Morton's to through email. Within 24 hours I had the General Manager from the restaurant call me, apologize and is sending me a gift certificate. Kudos to Morton's for responding to the email quickly -- it gives me hope that they do appreciate the Golden Rule!
No comments:
Post a Comment