The Supplier Abruptly Called Off ! How Did Cytech Systems’ Sales Champion Jessica Respond Promptly?

December 06, 2023

Signing the order is just the first step in cooperation, and various challenges follow...

According to Cytech Systems’ sales champion Jessica, customer D urgently needed a batch of electronic components. Jessica quickly negotiated the price with supplier O and signed the order. Unexpectedly, the supplier, who was originally able to supply the goods, suddenly backed out, claiming they couldn't provide the batch. Supplier O's cancellation left Jessica in a situation where there were no goods to deliver.

While communicating the situation with the customer, Jessica simultaneously had her procurement colleagues help search for alternative sources of supply.

The procurement colleagues quickly identified two alternative suppliers: Supplier A had some spot inventory but required 2 hours to confirm the order upon returning to the office, while Supplier B had partial spot inventory, albeit at a slightly higher price than promised to the customer.

As this order was urgent, and time for delivery by Jessica was limited, she decided to have the procurement colleagues first purchase some spot inventory from Supplier B. However, upon the arrival of the goods at the company and undergoing quality inspection, it was discovered that the products had a pinhole copper leakage issue, necessitating a return and causing some delays.

Jessica swiftly adjusted the plan, promptly arranged to repurchase chips from Supplier A, and confirmed through testing that the product quality met the standards. In the end, Jessica successfully delivered the goods to the customer within the specified time.

Despite some setbacks in this collaboration, Jessica through collaborative problem-solving with customer D, managed to successfully deliver the goods and earned customer D's appreciation: "Thank you very much for your efforts in helping me find the supply chain materials. If I need materials in the future, I will continue to seek your support."

Supplier cancellation are a common challenge in supply chain management, due to the complexity and volatility of the electronic components supply chain. Intense market competition, coupled with potential resource constraints or changes in market demand for suppliers, may lead to the inability to deliver on time. Handling such unforeseen circumstances tests the adaptability of sales individuals and the supply chain management capabilities of the company.

Facing the unexpected situation of suppliers cancellation, Jessica has summarized three key points for emergency handling:

Maintain timely communication with customers: Being transparent with customers about the situation is crucial. Informing them of the measures being taken to resolve it helps enhance customer understanding and trust. Especially in situations where customer demands are urgent and electronic parts supply cannot be guaranteed, it is essential to communicate with customers in advance to avoid impacting their production plans.

Control variables for stability: Reduce uncertainty for customers in transactions and prioritize problem-solving over pursuing profits. For instance, when seeking alternative suppliers and finding spot product prices higher than the original order prices, despite customers accepting the updated prices, I insisted on fulfilling the order at the original price. This demonstrates our commitment to addressing the issue, even if it means lower profits.

Seize the opportunity to make amends promptly: When faced with supplier cancellation, careful consideration is essential when selecting alternative suppliers to avoid further mistakes. Pay attention to detailed requirements, strive to become a trusted and reliable business partner for customers.

In summary, Jessica successfully resolved the unexpected fluctuations in chip spot supply, thanks to her excellent communication skills, outstanding customer relationship management, and flexible adaptability.

In addition, it's worth mentioning the company where Jessica works—Cytech Systems,which has an extensive and reliable supplier network. In the event of cancellation from suppliers, the company smoothly switches to alternative suppliers to maintain business stability. Furthermore, with years of accumulated experience, the company possesses robust supply chain management capabilities, enabling sales teams to flexibly adjust response strategies and ensure smooth delivery to customers even in emergency situations.

 

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