Risks taking on the next customer as solution provider in #supplychain #procurement #logistics

Risks Taking on the Next Customer as a Solution Provider in #SupplyChain #Procurement #Logistics

I recently had the opportunity to engage with several senior executives from various suppliers and solution providers, posing a fundamental question that touches on the core of business ethics and practicality: Have you ever taken on a new client, knowing that you didn’t have the greatest likelihood of success? Or, would you walk away from a sure sale if you felt that there wasn’t a good fit?

The pause that followed my question was deafening. Most organizations, especially solution providers, find themselves caught between a rock and a hard place. On one hand, they are driven by a strong desire to solve problems and originally set out with a vision to serve their clients. On the other hand, financial pressures from stakeholders, especially in the form of quarterly targets dictated by venture capitalists and financial markets, create an irresistible force that collides with the immovable object of thorough problem-solving.

This tension between immediate financial goals and long-term client success is what often leads to initiative failures. Effective problem-solving takes time. However, the pressing need to meet quarterly financial goals can result in premature decision-making, inadequately vetted client engagements, and ultimately, a higher risk of not delivering the promised solutions.

Keywords

Client fit
Financial pressure
Problem-solving
Initiative failures
Solution providers
Quarterly requirements
Senior executives
Stakeholders
Venture capitalists
Financial markets

FAQ

Q1: Why might a solution provider take on a client knowing they might fail?
A1: Solution providers often face intense financial pressures from stakeholders and have to meet quarterly targets, which can sometimes push them to take on clients even when the fit isn't great.

Q2: What are the main reasons for initiative failures?
A2: Initiative failures typically occur due to the clash between the long time required for effective problem-solving and the immediate need to meet financial milestones.

Q3: How does financial pressure impact the decision-making of solution providers?
A3: Financial pressures, especially those from venture capitalists and financial markets, can force solution providers to make premature decisions, opt for quick wins, and inadequately vet new client engagements.