How I Survived a Bad Supplier Relationship

Hey Founders & Friends,

I have profoundly messed this up. I’ve underestimated the time it will take to put together the interviews with my suppliers. Working around my work schedule is tougher than imagined. So I will likely break out the interview section as separate posts… Stay tuned!

That said, I do have some juicy news about the fall of a “co-man” even though they were more of a marketing/sales firm…

The TLDR

• Embarked on a wild ride with Nutrascience, a supplement supplier with more brands than it could handle and a communication style as clear as mud.

• After a first meeting that felt more like a bad first date, I decided it was time for a breakup.

• Product quality issues popped up like unwanted pimples, and emails got ghosted more than a bad Tinder match.

• I had a backup supplier identified and qualified well before the breakup.

• The moral of the story? Always have a plan B, don't settle for less, and if you're going to break up with your supplier, at least give them a heads up!

The Backstory

Nutrascience was founded in 2015, and I was introduced to them 24 months ago. 24 months later, they ceased operations. They lasted only 8 years in business, having served 2300+ supplement brands and employed over 40 folks.

Wait… let’s do some quick math:

2300+ plus brands / 40 employees = 57.5 brands / employee

Obviously, it isn’t as black as white as that, but level of service was a BIG TIME issue that plagued Nutrascience. So that math is mathin’. Plus, that was exactly my experience with them.

It Was Divorce at First Sight

As soon as I sat in my first meeting with their team, I knew I had to make it a priority to off-board them as a strategic, or lack thereof, partner. Here’s what rubbed me the wrong way:

1. Lack of proactiveness - communication was very service level. There were issues and they weren’t offering any solutions outside of, “we’ll get back to you on that”.

2. Focus on PO’s - their primary focus was on when I’d cut them the next PO. They didn’t showcase their value. They didn’t have an agenda prepared.

3. Lack of details - they shared very loose details. Lead times were generic with no commitment. Raw material costs? Forget about it. COA’s? Yea right.

I had to nudge, fight, and wrestle to get the information I needed to be effective at my job. I didn’t like that. Nobody should like that, and nobody should work like that.

So, after that first meeting, I met with the appropriate folks to get the divorce papers drafted up. It took some time, as these things normally do.

Throughout that time though, things began happening that accelerated the timeline to call it quits.

The Relationship Got Worse

Product quality issues started to arise. A huge no-no!

Communication somehow got worse. I had to follow up on my follow ups.

This was my fuel to accelerate the incineration of this so-called relationship.

Long before it got worse, I identified a side piece! You gotta have an out if you’re unsettled with your current supplier relationship.

This is why it’s crucial to develop secondary and contingent supplier relationships. No excuses here.

Within 18 months, I was able to calmly blow the relationship up. Just in time too. Imagine if I wasn’t proactive in ending this supplier relationship?

That would’ve been catastrophic for business, but I saw the writing on the wall 24 months ago.

In The End

I wouldn’t wish for the demise of any company. There are so many businesses and individuals impacted by that. I just peeked at Nutrascience’s LinkedIn, and they are down to just 8 employees. Those that likely haven’t updated their profile.

It’s sad. It didn’t need to be this way.

Sure, the current state of the economy contributed to them ceasing operations, but how they handled business relationships is what led them on this downward spiral.

If you aren’t satisfied with your supplier, you need to do something about it. Complacency is Calm Like a Bomb - (Thank you RATM!)

What I Would’ve Changed

Now I didn’t handle this breakup admirably. And that’s 100% on me.

I did ask for better communication. I asked for transparency. I asked for proactiveness. But I never let them know that we’d breakup if things didn’t improve.

I suppose I felt slighted by the service I was receiving from Nutrascience. But I did not let them know my intentions. That is one thing I would re-do if I went through this experience again.

It’s important to be the bigger person.

Co-man’s Doing it Right

In need of supplement co-man? Here are few doing things the right way. And no, these are not affiliate links, I’m not cool enough for that yet: 1. Vitalpax

2. Vitaquest

3. Capstone Nutrition

4. Herbaland Gummies (a brand & a co-man)

5. Arizona Nutritional Supplements

If you need warm intros, let me know! And if you want an analysis done on your key suppliers, don’t forget to take my quiz!

LinkedIn Shout Out!

If you’re a brand or co-man that doesn’t have your quality process in check, y’all need to be following Nate Call! He posts incredible content related to quality. He’ll save you headaches.

That is all for now. If you made it this far, you’re a real one! No fancy, or passive-aggressive call to action here. But if you liked this, please consider sharing!

Cheers,

Josh - Your CPG Supplier Insider