You're listening to Business English Pod, the Business English podcast for professionals on the move.
Hello, and welcome back to Business English Pod.
My name's Edwin and I'll be your host for today's lesson on English for purchasing and sourcing suppliers.
Every company is in the business of selling something.
But you can't be a seller of goods or services without also being a buyer of goods and services.
All companies require professional services, equipment, and supplies in order to function.
And if they sell goods, they also need the raw materials and parts to build those goods.
Buying all these goods and services is called purchasing.
Purchasing managers work hard to find the right products and suppliers and to negotiate good prices.
Bad purchasing decisions can impact profit margins, efficiency, and quality.
Good decisions can make a company a lot more competitive and profitable.
While purchasing managers can find suppliers in a variety of ways, one common way is looking for suppliers at trade shows.
And what kind of questions do purchasing managers need to ask when talking with potential suppliers at a trade show?
Well, for starters, you can begin the conversation by commenting on display products.
Next, you can ask about their experience, their capabilities, and their turnaround time.
And finally, you also want to ask about their company's business priorities.
After all, a regular supplier functions a bit like a business partner and you want a good overall match.
In today's dialogue we'll hear Adam, a purchasing manager who works for XFit, a company that makes fitness equipment.
Adam's at a trade show looking for a new supplier for an important part for one of their fitness machines.
He's talking with Jenny, who is representing a Vietnamese manufacturer.
Adam is trying to find out if Jenny's company is a good fit.
As you listen to the dialogue, try to answer the following questions.
1.
What does Adam comment on to begin the conversation?
2.
What does Adam suggest might cause challenges for a company in Vietnam?
3.
After Jenny talks about tariffs, what specific issue does Adam ask about?
Hi.
Feel free to have a look around.
Thanks.
And just let me know if you have any questions.
Yeah.
Actually, I was just checking out your pulleys.
These are glass-filled polymer, yeah?
You also do steel?
Yes.
Everything from our steel line is over here.
For pulleys, you'll see we've got grooved, flat, with or without flange, whatever you need.
Oh, okay, I see.
And you do the bearings on these as well?
For sure.
Those there are all single-row, hardened steel.
And we have a proprietary seal on those as well.
Guaranteed no contaminants.
Is that the kind of thing you're looking for?
Well, yeah, reliable steel pulleys, but also specialized steel casings, part of a fitness machine.
Do you do custom steel casting?
Yes, we have a foundry dedicated to custom work.
Carbon, stainless, all types.
I see.
So is that a big foundry?
Just curious how much custom work you do or whether it's mostly stock parts for automotive and such.
Quite a bit of custom work, actually.
And we're really growing that side of things.
Lots of demand there.
Mostly in Asia?
About 75%.
But we've got a few big customers in Australia and the US.
Uh-huh.
And I see you're in Vietnam, so Australia's pretty close.
But serving the States probably comes with some challenges.
Well, yes, there's always challenges.
But the supply chain in Vietnam is improving all the time.
And we have lots of other advantages.
Not to mention that we're not affected by the tariffs on China.
Right, tariffs.
But what I was trying to get at is what are we talking about in terms of turnaround time to the states?
Well, that really depends.
I mean, is it custom work or are we already set up?
We'd have to look at the production schedule and go from there.
But here's an example.
One of our customers in the States comes to us and says Now let's go through the dialogue again and look at the language and techniques Adam used to determine if Jenny's company is a suitable supplier.
The conversation starts as Adam is checking out or looking at some items on display in Jenny's booth.
Hi.
Feel free to have a look around.
Thanks.
And just let me know if you have any questions.
Yeah.
Actually, I was just checking out your pulleys.
These are glass-filled polymer, yeah?
You also do steel?
Adam is at the trade show looking for a new supplier for a component or part used in their fitness machines called a pulley.
When he sees a booth with the general type of component that he needs, he stops to chat.
At this point he's not sure whether this company can supply what he needs, but he uses the display products to start a conversation.
Using display products or other display information is a simple and effective way to start a conversation at a trade show.
So, let's practice some more ways of asking about display items.
Do you build all these units locally?
It looks like this has been 3D printed.
Is that right?
I'm curious if this is made from 100% nylon.
What can you tell me about these pieces over here?
As you can hear, your questions can be simple yes or no questions, or you can ask open-ended questions to get more general information about something.
So, does Jenny's company make steel pulleys as well?
Yes.
Everything from our steel line is over here.
For pulleys, you'll see we've got grooved, flat, with or without flange, whatever you need.
Oh, okay.
I see.
And you do the bearings on these as well?
Adam is curious not just about the pulley as an entire unit, but about the inner workings as well.
He asks about the bearings, which are small steel balls that allow the pulley to spin.
Let's listen to Jenny's response.
For sure.
Those there are all single-row, hardened steel.
And we have a proprietary seal on those as well.
Guaranteed no contaminants.
Is that the kind of thing you're looking for?
Well, yeah, reliable steel pulleys, but also specialized steel casings, part of a fitness machine.
Do you do custom steel casting?
Not only does Jenny's company make bearings, they even have a proprietary seal.
In other words, the company has invented its own bearing technology.
And this is good news for Adam, who is looking for reliable steel pulleys or ones that will last a long time and not break easily.
Another important issue to Adam is custom steel casting.
This means he wants a company with the ability to make specially designed steel parts.
All of these questions are part of determining whether Jenny's company has relevant experience.
Ideally, he will be able to find a company that has already done similar types of work.
What are some other ways we can determine relevant experience?
Let's try a few more examples.
Do you guys also work with other materials?
Is your facility set up to do other types of casting work?
Do you do fully customized heating units for large buildings?
Have you guys ever handled large orders like 10,000 or more pieces?
Now let's hear whether Jenny's company does custom work.
Yes, we have a foundry dedicated to custom work.
Carbon, stainless, all types.
I see.
So is that a big foundry?
Just curious how much custom work you do or whether it's mostly stock parts for automotive and such.
From Jenny's answer, it sounds like her company has the experience Exfit is looking for.
That includes having their own foundry or shop for casting metal parts.
But as I mentioned, it's not just about the right experience.
It's also about business priorities.
Adam wants a company that places importance on custom work, so he asks about the size of the foundry and whether custom work is a priority for their company.
If it is, then it might be a good match in terms of business priorities.
Let's run through some more ways of asking about the business priorities of a potential supplier.
So, are you looking to expand into Europe?
Would you say that quality is one of your top priorities?
What markets are you hoping to get into over the next few years?
Do you have plans to move into other markets as well?
So Adam has asked about experience and business priorities.
What else does he need to know?
Quite a bit of custom work, actually.
And we're really growing that side of things.
Lots of demand there.
Mostly in Asia?
About 75%.
But we've got a few big customers in Australia and the US.
Uh-huh.
And I see you're in Vietnam, so Australia's pretty close.
But serving the States probably comes with some challenges.
It's starting to sound like Jenny's company has the right kind of experience and business focus for Adam.
But it's not just about whether the company can make the part that XFit needs.
It's also about whether they have the business capabilities to get the parts to them.
This is why Adam asks about where their customers are and whether serving the United States comes with challenges.
Notice that he asks an open-ended question about challenges.
He's inviting a discussion to get a good idea of their capabilities.
He doesn't just ask whether they can or do serve the United States.
That would invite easy answers rather than good information.
How else can we ask open-ended questions to get a sense of a supplier's capabilities?
Let's practice some more examples.
Are there any special shipping arrangements for large orders?
So I guess quality control can be rather hard with things like this.
What can you tell me about your production capacity?
That's a lot of employees to manage, isn't it?
What does Jenny have to say about the challenges of serving the United States?
Well, yes, there's always challenges.
But the supply chain in Vietnam is improving all the time.
And we have lots of other advantages.
Not to mention that we're not affected by the tariffs on China.
Right, tariffs.
But what I was trying to get at is what are we talking about in terms of turnaround time to the states?
Jenny admits to challenges, but also points out some advantages of working with a Vietnamese company.
That includes not being affected by tariffs on China.
Tariffs are taxes on imports.
Many American companies that buy from Chinese manufacturers are concerned about new tariffs imposed by the US government.
Adam acknowledges the issue of tariffs before getting more specific in his questioning.
At first he asked generally about challenges, but now he wants more precise information on turnaround time.
In other words, how long does it take them to make and deliver products to the U.S.?
That's a very important consideration when you're purchasing from an overseas supplier.
Let's run through some more ways of asking about turnaround time.
What would you say is average turnaround time from order to delivery?
About how long would it take if we wanted a couple of these sent to our office in New York?
If we wanted some specialized parts, when do you think we could have them by?
Can Jenny provide a precise answer to the question of turnaround time?
Well, that really depends.
I mean, is it custom work or are we already set up?
We'd have to look at the production schedule and go from there.
But here's an example.
One of our customers in the States comes to us and says...
Jenny can't give Adam a precise answer about turnaround time.
Of course, it depends on several factors.
But overall, she's provided some good information based on Adam's questions.
He's done an excellent job of determining whether Jenny's company can do the type of work they need.
Now let's practice some of the language we learned in today's lesson.
Imagine you work as a purchasing manager for a furniture company.
You're at a trade show looking for a supplier of fixtures, such as furniture handles.
You'll hear a cue from a supplier, then I'll give you a suggestion for what you can say in response.
We'll guide you through each step in the practice and provide an example answer for each response.
Ready?
Let's give it a go.
Just let me know if you have any questions about anything.
Start by saying you are curious if these handles are made of aluminum.
Answer.
Yeah, I'm curious.
Are these handles made of aluminum?
That's right.
All of these are lightweight aluminum.
Now ask if they also manufacture stainless steel fixtures.
Answer.
I see.
And do you also manufacture stainless steel fixtures?
Yes.
We supply stainless fixtures for many big furniture companies.
Next, ask if they are interested in doing more high-end custom work.
Answer.
So are you guys looking to do more high-end custom work?
Certainly.
We do custom work for a few companies and we'd love to do more.
Answer.
But I imagine that it must be difficult for a busy factory to set up for custom orders.
We actually have an entire area dedicated to specialized work.
Finally, ask what would be a usual turnaround time on a custom order.
Answer.
So could you tell me then, what is your usual turnaround time on a custom order?
Now let's practice some of the vocabulary we've covered in this lesson.
In a moment, you'll hear a series of sentences with a word replaced with a beep.
Repeat each sentence, including the missing word.
For example, if you hear, The new free trade agreement has eliminated on imports.
You can say, The new free trade agreement has eliminated tariffs on imports.
After each response, we'll provide the correct answer.
Let's begin.
If you have any questions, please feel to ask me.
Answer.
If you have any questions, please feel free to ask me.
Having great relationships with shippers helps us manage the supply.
Answer.
Having great relationships with shippers helps us manage the supply chain.
We are looking to buy very... vehicles that don't break down often.
Answer.
We are looking to buy very reliable vehicles that don't break down often.
The factory promises an average turnaround of one week on most orders.
Answer.
The factory promises an average turnaround time of one week on most orders.
We've reached the end of this lesson, the first in our series on purchasing.
We've learned how to use display items to start a conversation and how to ask about experience, capabilities and timelines.
We've also looked at how to ask about business priorities.
Thanks for listening, and see you again soon.
