Approaching The Client-Supplier Relationship As A Partnership
When we look at the Dictionary definition of the noun ‘supplier’, there’s the one most obvious to us business types:
‘Supplier – a company, person, etc. that provides things that people want or need’
– Cambridge Dictionary
Being a fan of the beautiful game though, and having worked at Chelsea Football Club, I’m also familiar with this term in another context – football!
In the world of football, a supplier can refer to a player who assists in or sets up a goal. This, I love, because the client-supplier relationships I see that achieve the most together, take this approach.
The client knows they can’t get the results they need without the supplier and the supplier knows exactly where they need to be positioned, and what they need to do, to provide the client with that winning opportunity. The relationship is balanced. With all players on the same team, moving towards the same goal.
But most client-supplier relationships don’t work this way. Traditionally there’s a sense of hierarchy and, I don’t know about you, but I find it’s challenging to form productive working relationships when there’s a power imbalance.
So, what if we were to change our approach to the client-supplier relationship and remove the implied hierarchy?
What would a more balanced client-supplier relationship look like? Let’s use some real-world examples to imagine the possibilities:
Client-Supplier Relationships That Encourage Innovation
In a crowded competitive market, who succeeds? Those who best serve their customers’ wants and needs, right?
Let’s look at Netflix. Their goal is to entertain the world. That ambition was the same even when they were just a postal DVD rental service, realising their business was being left behind. They needed to evolve and Netflix knew that just one idea wasn’t going to be enough. They would need a whole host of people coming up with ideas, pushing boundaries and feeling their way to the future. So, alongside changing the direction of their business they also changed their work culture. Their mantra became ‘Freedom and Responsibility’.
In an unchartered effort to empower its employees, Netflix asked them to embrace innovation. Communication was to be open and honest. Everyone should be approachable and receptive to ideas, whatever their perceived position in the company. Risk-taking was encouraged and employees were entrusted to make many decisions on behalf of the company, often without the need for management sign-off.
Crazy, right? Surely giving every employee autonomy resulted in chaos?
Actually, it didn’t. There were some failures, yes, and the policy also created a work culture that, whilst high-performing, has also been described as sometimes toxic. However, it did help Netflix stay agile and competitive. It promoted company-wide innovation which enabled them to take on Hollywood, Sky, Amazon and other established industry giants and come out on top.
But wait – how is this relevant to the client-supplier relationship?
Well, because it’s not really about the employees or the suppliers. It’s still about working out what the customer wants – what would help to attract new customers, what would make the experience better for them, what will keep them returning to the service.
Netflix knew it had this knowledge internally but the corporate structure was creating a barrier. When they stripped out the hierarchy that was stifling the flow of ideas and sharing of knowledge, they suddenly had a lot more players working towards the same goal, all now empowered to play a more active role.
The same approach can be applied to the client-supplier relationship. Meaning attractions/leisure operators and technology/ticketing suppliers who adopt a more balanced partnership may increase innovation. By playing as equal parts of the same team you’re creating an environment where both parties are empowered to speak up and say, ‘Hey, I’ve got an idea!’
Client-Supplier Relationships That Deepen Knowledge And Understanding
We see it all the time. As the supplier-operator relationship moves on the system knowledge can so often decline, especially with the high staff turnover that our sector that can so often experience. That can result in attractions being less aware of the features and functionalities their ticketing software can provide. The client will insist they need to procure a new ticketing partner – ‘this one can’t do what we need,’ they’ll tell me. Sometimes this proves true, but all too often it’s not that the ticketing supplier can’t do what the client needs, it’s that they don’t know what the client needs. Or perhaps, the client has not understood the full capabilities of the supplier’s product. Usually, it’s a mixture of both.
In an unbalanced client-supplier relationship, communication is often one-sided. As such, one party may feel they can’t make enquires or revisit old ground. The other feels they shouldn’t have to ask questions, assuming they’ve already been informed of anything they should know.
A supplier who feels subservient to the client awaits instruction and therefore fails to be proactive. But the client won’t realise this. They’ll just assume the supplier can no longer fulfill their requirements. Suppliers will also, more often than not, prioritise the clients who hold more sway, in terms of investment, or who are the most communicative – chasing reports, seeking updates, needing extra support, etc.
So, how would this scenario play out if the client-supplier relationship was treated as a partnership?
Let’s use the example of attractions and ticketing software partners. First, the ticketing partner must gain a deep understanding of the client’s long-term goals and objectives. They’ll also need to be familiar with the organisational structure, as well as any limitations such as lack of time or technical knowledge.
In gaining a deeper understanding of a client’s business, suppliers can then tailor their offering, and introduce clients to the features and functionalities best able to meet their specific ticketing needs.
Forming the partnership in this way deepens knowledge and understanding for both parties. Yet, it needs to be ongoing with suppliers checking in on clients regularly and ensuring they’re still leveraging the product’s full capabilities. Suppliers who feel subservient to clients often don’t have the confidence to do this but those who build balanced relationships can, and that benefits both businesses.
Client-Supplier Relationships That Establish Trust And Respect
Shall we look at something a bit controversial now?
How about the corporate giant that divides opinion arguably more than any other – Amazon?
You can’t discuss fairness in client-supplier relationships without looking to Amazon. There’s no doubt that suppliers partner with Amazon because it’s effective. Small retailers get their products sold through Amazon and no longer have to work so hard to reach customers online, right?
Well, maybe. Quite a few of Amazon’s suppliers have a different take on it though. They claim they work with Amazon through necessity but that Amazon’s size means an imbalanced power dynamic that affects their ability to thrive on the platform. They claim they’re having to spend more to compete with other Amazon suppliers and even with Amazon’s own products.
Clearly, many Amazon suppliers don’t see their relationship with Amazon as a partnership, but that’s not harming Amazon, is it?
We can probably agree that a business’s success is reliant on how well it’s able to serve its customers and we know that Amazon has promoted a customer-centric philosophy. Yet, when it fails to work well with its suppliers, it fails to deliver what the customer needs. For example, suppliers claim shoppers are being led towards the companies that bid the highest to appear in searches rather than those with the most relevant products.
Whether this is really happening or not, one thing seems clear. When a company loses the respect and trust of its suppliers, decisions tend to be made that don’t benefit the consumer. Pressure on suppliers can mean they are rendered unable to help you in your most important joint objective – delivering for the customer.
Implied hierarchies within the client-supplier relationship can also stoke a blame culture when problems arise, and this can often get in the way of businesses working effectively together to find solutions.
Why Is Partnership The Best Approach For Client-Supplier Relationships?
In my experience, when a client views the supplier in a somewhat subservient role, opportunities get missed.
As we’ve seen, hierarchies in relationships can stifle innovation, get in the way of open communication, create barriers to understanding and prevent us from working effectively for the benefit of the customer.
When one organisation is procuring another to supply a service, it’s only right that expectations should be met. This goes without saying. To get the absolute most out of the relationship though, we need to work alongside each other, running towards the same goal with the same objective.
For that, you don’t need assistants, you need partners, and a level playing field.
One of ReWork’s core aims is to support attractions/leisure operators in establishing, developing and nurturing partnerships with their technology/ticketing suppliers. We also work closely with ticketing software providers to help them achieve better client retention. Our experience in the leisure, attractions and technology sectors, gives us the expertise needed to identify your requirements and create a plan to support the growth of your organisation. So, before you begin the complicated process of procuring a new ticketing partner, get in touch – We’re here to help!
