Tool Box
Issue No. 8 - December/ 2002/january
How VAF's Supplier Relations Deliver Business Improvement
Partners, not pressure
Home theatre and audiovisual equipment manufacturer, VAF Research is a big fish in a rather small pond. Making market-leading equipment at the top end of the quality spectrum means good returns from an international but narrow market.
Its market position gives VAF the advantage of close contact with its customer base – three internet fora exist for VAF users – and an interesting take on its relations with suppliers and corporate clients. This is a business that looks upstream and downstream for collaborative benefits.
“In technology-based industries things happen very fast,” principal, Phillip Vafiadis explains. “Without a clear understanding of the supplier’s capabilities, how can you react to change quickly?
“If you keep your supplier under pressure to ‘keep prices down or you’ll take your business elsewhere’, why would they want to respond quickly? You aren’t their favourite customer.
“Partnering with them is much more than just doing business. You have to know what their purpose and objectives are and want to support them.”
Obviously, choosing the right partner to establish such close links with has to be done carefully. But ‘partner’ companies, particularly small and agile ones can make very important contributions even to major corporates.
“For each supplier, their handful of products can be their who...
