Personally I see nothing wrong in the 'all sales final'. My daughter works at a steel mill in Pittsburgh and anyone ordering has to pay up front a non refundable deposit. The chip foundries are the same way, you have to pay up front since you are ordering a specialty item that there is only a niche market for.
I disagree, doesn't make sense.
If I order some steel stuff from your foundry, and you don't deliver in, say, 2 months – let alone 10! – I'm pretty sure I'll ask you my money back, because I need that steel stuff to produce my stuff, and if you can't deliver I'll have to buy it somewhere else.
Your delay would be causing my delay for my customers, and I really don't want angry customers, so you'll better ship or pay back promptly.
Hope it's clear.
Lohoris is absolutly correct about this. My company does buy mill scale from foundries. We use it as an Iron source for our products. If you don't deliver, its a breach of contract and we are done with you. These are very large contracts and mill scale sellers hop to the beat of our drum, not the other way around.
Regards,
Ok, answer me this then, are you the only company using said foundry? When you place an order, are you not told it'll be X days before they can even START on your order and that it'll then take Y days to complete and to expect it on a certain date? If you realize you made a mistake a week down the road and need 2x your original order, you'll have to again wait your line in the queue to receive the rest of your order, will you not? BFL ended up with a mistake like this... IIRC, they were to have 1 chip for Jala's and 4(?) for LS's and the full 8 for Singles and MR's. Even if they did not need to fully double their quantity of chips needed, they had to order more. If you received your mill order and found out you really needed 1.5x a much, how long would it take you to get that extra?
Chips foundries take on average 100 days from order to completion. I highly doubt your steel foundry has quite that much lead time. A lot can happen over 100 days and god forbid you had to start from scratch.
Unfortunately, your foundry is a poor analogy, but you chose to use it. Mill Scale is highly available it is a byproduct of steel manufacturing, among other sources,
http://en.wikipedia.org/wiki/Mill_scale We have been in business for over 60 years and we don't make mistakes like running out of raw products, and if we did, the
purchasing manager would be out of job. We keep enough raw material on hand to keep us running for months in advance. Constant inventory replenishment. There is never "We can start on your order in x number of days" It is delivered by rail car within the week we ask for it to be delivered. And as for our products they are delivered on the site when requested.
We don't do just in time ordering, and we don't run out of products, our own or raw materials purchased.
Now to address the only company using said foundry; No we aren't. And no we don't only source from one company. We use a pool of lowest bids. Maybe BFL could learn from that. Multiple sources can prevent you from running out. And "God forbid they did have to start from scratch" and look where that has put them. Did somebody get fired over the colossal supply chain snafu? Did they apologies to customers and do everything they could to make it right?
Were they transparent at every level and let their customers, mm investors, errr not quite right either, Monumental assholes I think thats the one know what was going on?
Or to at least give the customer the impression they did? The antics of the face of BFL would suggest otherwise.
We cant afford to do it the way BFL did it, we have competition. If we followed the BFL model, we would be out of business.
I can guarantee this as well:
Customer relations can be a very tricky thing. Do we have customer complaints. Absolutely, not many, but they do happen. How do we resolve complaints? By treating the customer with respect and doing everything we can to make them happy, even if they don't know what they are talking about. Are the customers always right? We treat them like they are, even if it costs us money. The reason for that is we know if it was to cost us a little now by retaining them it gains us more in the long run. If any agents of our company were to become a bit disrespectful to a customer they will be terminated. Have we ever lost customers? Unfortunately, yes. Most have returned after realizing it isn't always greener on the other side and a lot of grandiose promises cant be met. We never ask for an apology from the customer. If they come back, they are treated just as if they never left.
I get this feeling, you are affiliated with BFL? Not just a customer? If you are an agent or affiliate please take some of the information provided above to try and save your company. Even if you just use the customer retention strategy above, you will keep a few more customers. If BFL had treated all customers as I stated above, BFL would still have my money wise on my part or not, it is the truth.
We are definitely talking about very different products here, but at least the supply chain strategy and customer retention strategy do work, and would work for BFL.
From some of your questions to me, I feel you dont have much experience in industrial manufacturing. And from the fundamental nature of your question about running out of steel from a foundry. Do you think GM, Ford, Chrysler run out of steel?
Yes, we are on that level.
For me it comes down to this, BFL needs a fundamental culture mindset change.
Unrelated tidbit. We also use a very effective employee retention strategy.
Regards,