Is your small supplier an entrepreneur or an opportunist?

| 0 Comments

 

OneInMany.jpgWhile “entrepreneurship” is often assumed to be directly related to “passion”, this is not necessarily the case. With an increasing number of individuals choosing to step into the entrepreneurial space as a means of financial survival, buyers need to have clarity about the driving force behind their SME suppliers. If it’s all just about the money or chasing an opportunity they’ve chanced upon, these “entrepreneurs” are unlikely to meet all your contract’s deliverables, says Shawn Theunissen, head of CSR at Growthpoint Properties and Property Point (Growthpoint Properties’ enterprise development programme) in this month’s SmartProcurement.


Even though no two entrepreneurs usually follow exactly the same path, there are a couple of notable characteristics that these individuals have in common. The first is how they view life as a series of possibilities and respond to it accordingly. The second is that they usually want to deliver on their promises and maintain healthy business relationships whilst following their passion.


“These characteristics are complemented by courage and tenacity. They give rise to a very specific mindset and drive – which often prove critical in challenging times,” says Theunissen.


“For this reason, it is important to distinguish between ‘entrepreneurs’ and ‘opportunists’ during supplier negotiation and selection processes,” he continues. “Buying organisations will also need to have very honest conversations with small suppliers during the course of their relationship to ensure they remain suitably focused on their contract KPIs while maintaining their own long-term vision of success.”


It is particularly important during challenging times to know, without doubt, that your small suppliers will draw on their personal resources of discipline, perseverance and motivation in order to continue to work towards your agreements and their goals, despite coming up against significant adversity.


“This is where passion can make all the difference,” says Theunissen. “Because it is linked to purpose and one’s life ambitions, it equips entrepreneurs with the will and determination they need to dig deep even when the odds are against them or their buyers.”


Entrepreneurial suppliers will not sacrifice their vision for an easy opportunity. They will continue to work to equip themselves with the skills they need to maintain supply. They will also step-up and step-in at critical times (whether to complete a tender or collect debts) because of their sense of ownership and personal accountability.


Theunissen notes that “passion” is not an accurate indicator of a capable supplier: a considerably more stable supply is gained from a supplier who commits to a relationship wholeheartedly as opposed to one who “tries” something simply because an opportunity presented itself. “This typically forecasts how the supplier will respond under pressure and the longevity of the supply relationship.”


Theunissen’s advice to buyers is to regularly revisit the driving force behind entrepreneurial suppliers; just as one would a business plan and model. “This will ensure that focus and drive remain a given throughout the supply relationship and that the entrepreneur retains personal integrity, pursuing their life’s purpose and ambitions.”


For more information on developing and working with entrepreneurs please contact Property Point.

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

 

Career opportunites

Warehouse Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
R400 000 - R480 000 CTC per annum.Location: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
R400 000 - R500 000 per annum.Location: Cape ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Consultant
R650 000 - R750 000 per annumLocation: Cape ...More

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R 800 000 - R 900 000 ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Salary: R 600 000 - R 650 000 ...More

Supply Chain Analyst

  • <500 000 Analyst Gauteng Permanent Supply Chain
R600 000 - R700 000 per annum Location: ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Management
R850 000 - R1 000 000 per annumLocation: ...More

Commodity Manager

  • <500 000 Commodities Permanent Procurement Management Western Cape
R700 000 - R850 000 per annum,Location: Western ...More

National Supply Chain Manager

  • <500 000 Across borders Permanent Procurement Management Supply Chain
R750 000 - R1 000 000 per annum,Location: ...More

Industrial Engineer

  • <500 000 >500 000 Industrial Engineer Operations, Planning & Inventory Permanent Western Cape
R450 000- R500 000 CTC per annum,Location: Western ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Management
Category: Procurement,Salary: R700 000 - R800 000 per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Category: Consulting,Salary: R750 000 - R800 000 CTC ...More

Logistics Manager

  • <500 000 Across borders Logistics & Warehousing Permanent Procurement Management
Category: Logistics,Salary: R900 000 - R1 000 000 ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Area of Specialisation: Planning,Salary: R500 000 - R650 ...More

Industrial Engineer

  • <500 000 Analyst Gauteng Industrial Engineer Permanent
R800 000 - R850 000 CTC per annum.Location: ...More

Security Manager

  • <500 000 Analyst Gauteng Permanent Procurement Officer / Specialist
(Total Cost to Company R350K - R550K).This is ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R650k - R750k) excluding

Commodity Manager Raw Materials

  • <500 000 Commodities Gauteng Permanent Strategic Sourcing
(Total Cost to Company R980k - R800k) excluding ...More

Commodity Manager Logistics

  • <500 000 Commodities Gauteng Logistics & Warehousing Permanent
(Total Cost to Company R1mil - R900k).Industry: Engineering

Procurement Consultant

  • <500 000 Gauteng Permanent Procurement Consultant Procurement Management
(Total Cost To Company 550K - 450K) includes ...More