In an ever-evolving business landscape, adapting to the demands of a dynamic supply chain is crucial for sustained growth and customer satisfaction. Mazzella Companies, a renowned industry player, has experienced an extraordinary four-fold increase in their vendor base over the past year. As they continue to expand and diversify, Mazzella Companies understands the importance of thoroughly researching and vetting their existing and new vendors to ensure seamless operations and meet evolving customer needs.
We sat down with Steve Osterfoss, Director of Supply Chain at New Tech Machinery (NTM), and Linea Fogo, Material Manager West at Sheffield Metals International (SMI), to discuss red flags they look for when conducting research and vetting new supply chain partners.
1. Availability
Limited availability often indicates that the supply chain partner may have capacity restraints or limited resources to handle the required volume, which means they won’t be able to scale and grow with the company’s growth objectives.
As Linea says, “Availability is a big concern for us. Sourcing the volumes that we do and the growth we’re still experiencing year or over, we’re looking for customers that can step up and provide us the volumes necessary to maintain our customer base and provide them the level of service they’ve grown accustomed to.”
2. How They Handle Warranty Claims
Warranty claims are a crucial aspect of customer service and satisfaction. Customers expect a smooth and efficient process when they experience issues with a product sold by Mazzella Companies and need to make a warranty claim. Partnering with a supply chain organization that has a well-defined and customer-centric warranty claim handling process ensures that our customers receive the necessary support, repairs, or replacements in a timely manner.
Linea shared the importance of how a vendor handles warranty claims by saying, “We are providing anywhere from a 30 to 40-year warranty on the products we’re offering, so we need companies that are going to stand behind those products and have a good reputation in the marketplace.”
Linea said with so many different facets to the claim world, and not all claims being the same, it’s important to have transparency and communication throughout the process so that expectations can be managed. “Any time a warranty claim is made, we’re going to go back to the vendor for the analysis they did before they sent out the product and if it’s damaged before it makes it onto a roof, we’ll send samples over as well, and then they’ll do their own inspection also. It could take anywhere from four to six weeks to get one closed up, but that could be even longer if it’s a foreign mill, and so communication throughout that process is key.”
Related: Paint and Substrate Warranty Claim Process: How to Submit a Claim
3. The Supplier Should Be Able to Test Small Batches
Linea says, “You want to test things these producers can offer us in small lots. We buy thousands of tons of metal every month, every year, and you have to walk before you run. So, we will trial anywhere from 40 tons to several hundred tons of material. We run it through the paint lines, we look at quality, both inbound and outbound. We interview suppliers, we’ll visit their manufacturing sites, all of those things to make sure that we’re dealing with the top 1% of production here in the United States and abroad outside of availability.”
If a supply chain partner doesn’t test in small batches, that could significantly impact their products, especially if things go wrong. Suppose a supply chain partner is testing in small batches. In that case, they have more control over the quality of their product and can mitigate risk when and if something goes wrong, which impacts cost efficiency, their ability to adapt, and their overall confidence in their product.
4. Knowledgeable of the Products in Their Distribution Line
Linea says that a vendor being knowledgeable about the products in their line means they see the big picture, “Knowing your products means understanding that your product is going to end up on an owner’s roof. If you’re not very informed on exactly what you’re doing and why you’re doing it, that could be a big red flag.”
If a vendor isn’t familiar with their offerings, that could lead to operational inefficiencies or product mishandling which could affect production. A lack of awareness may also lead to problems down the road once the product is in the customer’s hands as they may not be able to address customer inquiries or mitigate potential risks associated with regulatory compliance.
Steve shared, “What you’re really doing when you’re looking for a vendor, in most cases, is trying to establish a long-term partnership. So, if they’re not knowledgeable of the products in their distribution line, then we’re really not interested in them. “
5. Rapid Changeover of Personnel or Product
Rapid changes can create instability and incontinuity, which can all lead to disruptions in communication. This may lead to a loss of institutional knowledge, experience, and understanding of the specific nuances of your partnership. The reliability, consistency, and efficiency of the product could all be affected by these factors.
Steve shared, “If there’s a rapid changeover of personnel or product lines in that area, that’s a red flag. That’s going to be someone that we walk away from. That’s not someone that you want to rely on to grow your business into the future.”
6. Unwilling to Visit Our Operations
Steve put it best when he said, “If this is a key vendor that wants to do business with us, but they don’t want to spend time to come over and look at our operations and see what we do and how we do it, meet the people involved in the supply chain process, we’re not going to be interested in them. They have to be willing to invest time to support our operation.”
Linea shared that sentiment by adding “Not visiting could potentially be a negative for us because we want our partners to know what we do just as much as we want to know what they do. They could watch all the videos they want, but that personal connection is what matters. Realizing how important each of our roles is and what we’re trying to produce.”
7. Awareness of Their Own Key Performance Indicators (KPIs)
Steve says, “If you’re talking to a supplier about their KPI’s, what they’re measuring themselves on, that’s always a good indication. That means they understand what metrics are important. Especially the ones related to quality. Are they delivering products that meet the specifications? Accuracy, too. Are the number of pieces being shipped accurate to the packing list and invoice? Is the pricing correct to the packing list and purchase order? Those are things that we look for as successful KPIs. And of course, on time delivery. You can’t work with someone that has high quality and high accuracy but is never on time – does not support a manufacturing operation.”
Linea shared that as one of the largest risks associated with the products Mazzella Companies sells being warranty claims, with the cost of a warranty claim sometimes greater than the actual cost of the materials alone – KPI’s are crucial. So, if a vendor understands risk enough to mitigate it, it can reduce those future claims and build trust. “Having customers that stand behind what they produce, customers that have a long-standing history in the industry, those are very important things to us.”
Linea shared how any minor hiccup could throw off an entire schedule. “As a team, we hold ourselves accountable, so we want our vendors to hold their teammates accountable as well. We talk in-depth about our expectations and what we need from them, and I think when we know they’re tracking their success, we can better rely on them for what we need.”
Forging Forward
As Mazzella Companies forges ahead in an era of perpetual change and fierce competition, their commitment to adaptability and customer-centricity remains unwavering. By recognizing the significance of conducting thorough research and assessments, Mazzella Companies demonstrates their dedication to maintaining operational excellence and meeting the ever-evolving demands of their customers. By staying agile and proactive in their approach, they ensure that their growth trajectory continues to thrive while providing unparalleled satisfaction to their valued customers.
