Demand Engagement in Your Next RFP
Throughout my career, I’ve been tasked with responding to multiple requests for proposals (RFPs) on behalf of a small variety of organizations. With few exceptions, the boiler plates for the requests were similar…asking for price, item specifications, lead times, eCommerce capabilities, inventory service requirements, technical expertise and such.
Surprisingly enough, none of the RFPs inquired about my company’s level of employee engagement, which begs the following questions: How does a vendor’s employee engagement (or lack of) impact the supply chain and, should engagement become a standard specification? My experience with product managers, materials managers, sales teams, and customers suggest that employee engagement and loyalty should be strongly considered, if not prioritized.
Just imagine displacing a trusted vendor for another with more attractive pricing, but with a workforce turnover rate that competes with the likes of many retail companies. Does a disloyal employee base drive down fill rates and drive up quality issues? Potentially, yes.
Don’t take my word for it, ask any manufacturer or distributor that has done business with a supplier partner that decided to move their operations to lower cost situations in hopes of “driving higher profits.” In many if not most instances, value-driving frontline employees will not relocate for production-oriented jobs, resulting in immediate knowledge depletion once the move is completed…not to mention, a drop in morale while the move is being planned and executed.
I’m not suggesting that these strategies can’t result in an eventual return on investment, but I’m comfortable with arguing that the return typically takes significantly longer than anticipated, and, long-time profitable client partnerships are subjected to undue risk. It takes significantly less time to lose a customer than it does to earn one.
Unfortunately, too many decisions are being made with limited sight…typically, a disproportional focus is placed on the balance sheet versus the actual reality that front-line workers deal with, and problem solve every shift, every day. Overlooking the impacts of these moves on engagement is short-sighted, in many cases disastrous, and too often, repeated.
It’s time for companies to not only foster and value strong engagement within their employee base, they need to demand it from their suppliers as well. Doing so will drive more profits than ill-fated attempts at driving down costs through methods that destroy engagement, loyalty, and profits.
Product managers and purchasing professionals, it’s time to build engagement specifications into your RFPs. If a prospective vendor has poor Glassdoor.com ratings, it’s time to inquire before you commit. Visit your current and prospective vendors, and conduct due-diligence on engagement. A portion of your success is dependent on and proportional to their employee loyalty and engagement. Let’s all do business with vendors who can demonstrate in an RFP response that they’re a true destination for talent.