Questions and Answers from IRI's Members: What Are IRI Members Talking about? These Questions Were Recently Posed on IRI's Community Forum

Q.: Are you listening to your supply chain, or just your customers?Has anyone had success in driving innovation by bypassing your immedi- ate (direct) customers and significantly impacting end users or other parts of the supply chain? For instance, how could someone near the beginning of a supply chain (primary resources, materials, energy, etc.) successfully influence final design or end use?If you are an OEM or end-use sup- plier, what would cause you to listen to someone deep in the supply chain as opposed to insisting that they listen for your needs? Are you listening to your supply chain, or just your customers?Dave HelmickR&D ManagerCarpenter Technology Corp.AnswersI've seen this done in other organiza- tions where I've worked, where it was referred to as "pull-through sales." The concept is simple enough in prin- ciple, and the basic approach to your customers' customers' customer is, "Hello, we make the stuffthat makes the stuffyou buy from your suppliers much better." (You may recall there is a catchy advertising campaign for a major specialty chemical company that sells this to the masses.)The trick I believe is in the folks you use to employ this technique and their approach to more downstream end users. The most successful individuals were those who were naturally predis- posed to good contextual interviewing, which at that time wasn't a skill as readily trainable as it may be today. These individuals approached the value chain in a manner that looked for who was feeling pain, and they would try to get an understanding of whether that pain was something that our products and services could sub- stantively relieve.In one example, a major food pack- ager was distressed about the control and quality of the printing in their pro- ducts packaging and the limitations on the graphics that this lack of quality and control required. Understanding that our company could produce a key component in the printing process that would allow printers to achieve a higher quality, more consistent graphic was available but at a price point that was anathema to our traditional buyers, they embarked on a new path. By arranging a meeting based on a theme that was compelling to the downstream end user as well as our existing customers, "The Future of Graphics for Packaging, going where no printer has gone before!" (No, this wasn't really the title, just an example), they were able to open a forum in a nonthreatening manner for discussions about measurable objectives with both today's customers and their downstream end users.The rest of the process allowed cross-functional teams access to the downstream folks unhindered by today's customers, and when a product was developed that met the established needs of the end user, the negotiations were more dynamic and did not involve any purchasing agents until after the product was spec-ed in by the end user. It was remarkable how the tone of the conversations changed at that point, too. In this example, the end user was only two steps removed from the normal customer, yet it adequately covers some essential basics that provide opportunities for success in this approach.Will GossR&D Section ManagerChampion Technologies, Inc.This is a great question, and one that is eventually faced by most thoughtful companies who supply materials to a lengthy supply chain. Your immediate customers are often not interested in educating you about the needs of their customers. In fact, they may jealously guard such information for fear that their competitors might get access to it, or even that their suppliers (you) might bypass them in the supply chain.It is often difficult for a supplier to unilaterally approach a customer's cus- tomer. For one thing, it may anger your immediate customers. If you haven't been having conversations with customers' customers, then you may not know who to call. Even if you do, they may need to get corporate agreement prior to meeting with you, and in some companies, that process is sufficiently daunting that your target simply loses interest. …