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Vendors Ron Graham Extracted from the sci.engr.* FAQ on Innovation and Product Development |
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The Four Laws of Dealing With Vendors
First Law. Contacting vendors
turns out to be a golden opportunity for the young engineer
(any engineer?) to learn not only about the vendor's specific
product line, but about the type of product in general. At
first, it's likely that the product you are shopping for has
more characteristics than you need to know for your application.
(If you're looking at a menu, you choose your dinner on the basis
of cost and what's in it -- not on the individual "Nutrition Facts.")
In one example, a contributor was looking at load cells, and one
load cell manufacturer gave specs on the following: rated output,
excitation, accuracy, linearity, hysteresis, repeatability, zero
balance, creep, operating and storage temperature, thermal
effects, maximum load, bridge resistance, deflection, materials
used in construction (both of structural and electrical parts),
height, weight, bore, compatible meters, rated capacity, and
cost. The contributor's interests were rated capacity, geometry
and cost. That other stuff is listed in the catalog for a
reason, and no doubt that reason is related to some
customer's needs. Knowing what others care about in their
purchases may guide you in a purchase down the road, when your
own requirements are more severe.
Talk to vendors on the phone. You can nearly always learn
about how their thing works, and what you should be looking for
in a purchase. In another example, a contributor was looking
for electric winches for pulling wire rope. The first vendor
explained why the winch's drum size is closely related to its
rated pull and power draw. The second vendor explained why the
rated pull of the winch is only about one-sixth to one-fifth the
rated strength of the cable. The third vendor explained how a
winch can backdrive, what the consequences are of the backdrive
and how to avoid potential problems in winch selection. The
contributor also learned also about grooved drums, mounting
technique and noise.
Use vendor catalogs. They can contain a wealth of
knowledge of product fundamentals. The Editor has not seen a
large number of them, but he recommends as examples Omega
Engineering catalogs because of the info they contain about
fundamentals of sensing devices; and the National Instruments
"Instrumentation Reference and Catalogue" for data acquisition
fundamentals. Best of all, such catalogs are to be had for
FREE.
Design spec sheets for your application. In the winch
example, info sheets listing requirements on winches, and on wire
rope, were faxed to dozens of companies in each of the two areas.
This task quickly eliminated three-quarters of the possible
companies from contention. Which leads to the Second Law.
Second Law. Why will you find so many companies in
the area you are looking for?
At the Chinese (for example) restaurant, if you tell the person
taking your order up front that you require your meal to be
spicy, contain no shellfish and no MSG and no baby corn, then
that helps you get a meal to your liking with no long wait and no
surprise cost. In the same way, the faxed requirement sheets may
keep you from having to call each company individually -- and no
doubt from playing "phone tag" with some. You may even locate a
company with something on the shelf that meets your needs. Which
leads to the Third Law.
Third Law. If you choose something off the menu,
it may cost more, it may take longer, and they may not even have
it at the restaurant. The same contributor encountered this when
trying to purchase conduit for the wire rope. The wire rope was
aircraft cable -- which has a rated diameter with a tolerance of
ten percent -- the "rated diameter" is actually a
"minimum." They wanted conduit that would permit the cable to
pass without slop, but would also accommodate the relatively huge
tolerance in cable diameter. (This is expensive.)
Buy multiple related items from the same supplier when
possible. You may (in this example) find you are better off
buying both cable and conduit from the same supplier -- even if
it means letting a spool of aircraft cable go to waste. If a
vendor doesn't have what you want, that vendor would either not
bother to respond or send a polite "decline to bid."
Let the vendor be the expert on the vendor's product. Our
relationships with vendors can make us more productive, by
actually eliminating the need for our project engineers
themselves to be experts on the type of product the vendor sells.
Follow as much as is practical the vendor's recommendation.
Fourth Law. Why should it be that a vendor (whom
you have never met) would be interested in your success? Because
if you succeed, and if you attribute your success (in part) to
that vendor, you will do business with that vendor for a long
time. A satisfied customer is worth more than Gold-Pressed
Latinum.
If you pay your bills early, you can get a line of credit
later. If your bills are small and your product especially
promising, you may get that line of credit early. Don't hesitate
to ask for it -- but be careful how you approach it. You must
remember the First Law of New Technology: no-one wants to
be the first to buy it. So in approaching vendors, as you would
in approaching potential investors, you must concentrate on the
promise (and the market niche) of the technology, rather than on
its developmental aspect.
Don't hesitate to let the vendor know how you're doing.
Establish a personal contact at the vendor's shop. (Most will
want to give you one. That person will probably be referred to
as an "account representative," or something like that.) If you
have a personable relationship with that representative, then you
have an advocate at the vendor's shop. Comes in handy.
Characteristics of "Good" Vendors
These are in alphabetical order. You can decide which are the
most important for your needs.
Characteristics of "Bad" Vendors
How to Find Vendors The Thomas Register, or Vendor Directories. Since the Thomas Register is on the Web (and on CD-ROM), you might be able to get by without, you know, actually buying that couple hundred pounds of catalogs they put out in print. (A small company is always looking for the main chance.) But many, many vendors are getting on the Web, and many of them will no doubt be found at www.(insert company name here).com. Trade magazines. These also prove very useful guides to locating vendors. Machine Design, for instance, annually publishes a "Product Locator." The trade magazines are often kept afloat by their advertisers, and thus you can get subscriptions to some of them for FREE. Be careful with your request, however: Machine Design (for instance) is one publication that routinely rejects requests for free subscriptions from very small companies. Some from small start-up companies lie about how many people they work with to get these subscriptions. The vendors themselves. One participant in this discussion saves time by demanding that what he buys be second-sourced. "Ask your vendor who supplies the same thing? And the list gets self-generated. Next, ask each one why you should buy their product and not from their competitor (be specific) You'll be amazed at the 'inside' information you'll get. Also, ask for a list of satisfied customers and talk to them, after all you don't hire a potential employee without checking their references why would you buy a product from someone without checking theirs?" The reasons this idea is so good are as follows:
Manufacturer's reps. They will sometimes represent several companies with similar products, saving you the hassle of dealing with multiple companies. One contributor claims to be able to limit a product search to 2 or 3 reps, rather than 10 or more individual companies. The reps are good at giving comparisons among the companies, and they are usually very knowledgable about their field. |
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