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Avoiding the houses of horror
Lisa Wichmann
With summer in full swing, things at the office tend to slow down a little—though not as much as they used to! If you’re fortunate enough
to have some downtime, you’re probably spending it dreaming and scheming...recharging and thinking about new strategies and plans for the fall. On that note, the 2007 PMAC conference was perfectly timed, right beforethe official kick-off of summer in June.
The location this time was Niagara Falls. Those of you who’ve been there know it’s a little scary, in many senses of the word. As soon as you step out of the hotel, the houses of horror beckon. Late at night, bored summer students man the gate at wax museums, haunted mansions and other establishments of gore. The garish lights and dracula laughter are meant to draw us in...make us fascintated, curious.
But choose wrongly, and you end up wasting your time and money. In that respect, the locale was the perfect backdrop for the theme of the conference: global sourcing. Speakers tackled the risks, gains and allure. We learned how a multimillion dollar deal—months in the making—was scuttled within a few seconds in Japan, when a North American executive thoughtlessly threw a business card she just received in the garbage.
Negotiating expert William Agee Jr. related how he showed up for a 9:00 a.m. appointment in Brazil but no one else arrived until 10:45. How in other cultures, he had to be available for two or three nights of socializing before the contract was even mentioned.
In Ireland, prospects have no patience for rescheduled or cancelled appointments. In Chile, they like to bring their whole family into the deal. In the Czech Republic, the price of entry is a business card with credentials translated into their language. In some countries, executives expect to keep negotiating—even after the contract is signed.
Then there are the questions. Bruce Winder, director of imports with Canadian Tire Corp. brought into focus all the things that can go wrong. “What do you do with excess inventory? Do you ship it back? That’s pretty tough,” he said. “What do you do if you get the wrong goods? How do you know if you’ll get it on time?”
In some cases, the sample you approve is nothing at all like the product that gets shipped. “And how do you know if they have cash flow? Are they going to be in business in six months?” If not, it isn’t easy to rebuild goodwill with local vendors, he noted.
Yet, companies such as Canadian Tire continue to source overseas, for
the most part, successfully. In Winder’s view, it’s all about knowing the risks before you go in...a healthy dose of fear to counter the excitement.
Just like in Niagara Falls, there are tons of exotic suppliers vying for your business and your time. Many sound intriguing. But scores of them just can’t deliver on the promise.
With all the frenzy to start doing business in global markets, purchasers might be tempted to rush in. Instead, buyers who’ve been there recommend taking it slow, and finding suppliers who can be trusted. They are out there. It’s just a matter of finding them in the melee of lights and noise.
Contact the editor at lisa.wichmann@pb2b.rogers.com
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