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 qualifying vendors.
Whether you're buying raw materials, equipment, or services, purchasing decisions are high stakes.
Make a bad decision and it will cost you time, money, and goodwill.
Make the right decision and you can increase your revenue, improve operations and gain more customers.
Because purchasing decisions is so important, companies invest a lot of energy into the process of vendor selection.
In previous lessons, we've looked at sourcing suppliers and discussing vendor criteria.
Once you've got a clear idea of what you need and you've had some discussions with possible vendors, then you need to qualify them.
Basically, vendor qualification is about talking to a vendor to make sure they're the right fit, and that's best done during a visit to their facilities.
Venta qualification includes asking for documentation and getting samples as proof of quality and a clean track record.
As you talk, you may try to identify any inconsistencies between what you have heard and what you see.
It's also important to ensure comprehensive quality management and to probe for proof of consistency.
In today's dialogue we'll hear Adam, a purchasing manager who works for XFit, a company that makes fitness equipment.
Adam has just taken a tour of a potential vendor's factory.
He's talking with the manufacturer's representative Jenny, and asking questions to see if her company is a good fit to supply parts for XFit's exercise equipment.
As you listen to the dialogue, try to answer the following questions.
1.
Why does Adam want product samples?
2.
Why does Adam mention that he didn't see the equipment or a setup for the powder coating process?
3.
What does Adam want Jenny to provide in order to show proof of consistency?
Thanks for the tour.
Looks like you run a tight ship overall and some impressive machinery.
But there were a few things I wanted to follow up on.
Certainly.
Okay, so first off, there's a couple things we'll need from you.
For one, could you give us a copy of your HSE guide?
For sure.
I'll get Connie to fetch you that once we're done here.
Great.
Now, besides the health and safety stuff, I'd like to talk quality.
All right.
Questions there?
Well, for one, we'd like to take some samples back with us.
We'll run them past our quality people.
No problem.
I think Connie's packaging up some samples right now.
Everything's in there.
Finished, unfinished, all of it.
Wonderful.
And please make sure we've got some powder coat samples in there.
You know your questionnaire indicated you could do powder coating, but I didn't see any powder coating set up in the finishing shed.
Oh, yeah, powder coating.
That's actually one thing we farm out.
I see.
A really good local outfit, actually.
But that's not something that's done in-house.
So my concern there would be quality.
And I just want to make sure does your quality management system extend to your subsidiaries or these outside workshops you're using?
Yes, for sure.
Same standards apply across the board.
We're there regularly to do inspections, dealing with any issues as soon as they come up.
Alright then.
Could we pull some of their test reports from the past few years?
Not the whole lot, just a few at random?
You bet.
You'll just have to give me a bit of time once we're done here.
But yeah, happy to provide that.
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 good fit.
We join the conversation just as they finish a tour of the factory.
Thanks for the tour.
Looks like you run a tight ship overall and some impressive machinery.
But there were a few things I wanted to follow up on.
Adam is impressed by the tour, but it's important to follow up or ask further questions about anything you've seen or about key criteria in your vendor qualification process.
Let's listen to Adam's first question.
Certainly.
Okay, so first off, there's a couple things we'll need from you.
For one, could you give us a copy of your HSE guide?
One thing you can do to qualify vendors is to ask for documentation.
That might include an HSE guide or health and safety guide, as Adam asks about.
But it might also include an employee manual, financial reports, quality management reports and insurance certificates.
Asking for these types of documents is standard.
During vendor qualification, you need to see clear evidence that the company has the right standards and processes.
Let's try some other ways of asking for documentation with a few more examples.
We'd really like to see your quality management manual.
We'll need to see your complete financials for the past three years.
Please provide copies of all licenses and certificates with your proposal.
Now let's hear how Jenny responds to Adam's request.
For sure.
I'll get Connie to fetch you that once we're done here.
Great.
Now, besides the health and safety stuff, I'd like to talk quality.
All right.
Questions there?
Well, for one, we'd like to take some samples back with us.
We'll run them past our quality people.
Besides health and safety, which is a particularly important consideration when you're outsourcing overseas.
Adam introduces a topic of quality.
This is a major issue, and Adam starts by asking for some samples.
It's normally not enough to just look at them yourself.
You need to get an expert opinion.
As Adam says, he wants to run them past their quality experts so they can review the samples carefully.
That way you can catch any defects or problems.
Notice that Adam isn't being overly polite.
He's not saying, would it be possible to get some samples?
Because it's not really an option.
Getting product samples is standard procedure and even if you do phrase it as a question, no is not really an acceptable answer.
How else can we ask for samples for quality testing?
Let's practice some more examples.
We'd like to get some samples of the different materials you use here.
Can I pull a few random samples to test in our lab?
Could we have some examples from each of the production lines?
I'd like to take a couple of boxes back with me to assess quality.
As we can hear, Jenny fully expected to have to provide some samples.
Let's listen.
No problem.
I think Connie's packaging up some samples right now.
Everything's in there.
Finished, unfinished, all of it.
Wonderful.
And please make sure we've got some powder coat samples in there.
You know your questionnaire indicated you could do powder coating, but I didn't see any powder coating set up in the finishing shed.
Jenny has mentioned that she'll include all types of samples, but Adam makes special mention of a particular type of finishing called powder coat.
He's concerned that what he saw during the factory tour didn't exactly match the information provided by Jenny's company on the initial vendor questionnaire.
The whole reason you tour a vendor's facility is to make sure that what they've told you is true.
And so you'll be looking for evidence to support the information you've been given.
As Adam says, he didn't see the setup or equipment for the powder coating process, so it's important that he raise this issue after the tour.
There are many other ways we can bring up inconsistencies.
Let's run through a few more examples.
You said every manager was certified, but is that really the case?
It looks like the nearest airport isn't quite as close as we were led to believe.
So, we've seen two small workshops, but you said before you had three.
Your questionnaire mentioned hardwoods, but I didn't see any in the shop.
Now let's listen to Jenny's explanation about the powder coating issue.
Oh, yeah, powder coating.
That's actually one thing we farm out.
I see.
A really good local outfit, actually.
In fact, Jenny's company doesn't do the powder coating themselves.
Instead, they farm it out, which means they contract another company to do it.
Don't be confused.
Farming something out has nothing to do with actual farming.
Jenny assures Adam that it's a good company or outfit.
But for vendor qualification, we need to be certain.
Let's hear Adam's response.
But that's not something that's done in-house.
So my concern there would be quality.
And I just want to make sure does your quality management system extend to your subsidiaries or these outside workshops you're using?
It's very important to make sure a vendor has a good quality management system.
But if their contracting work out to other companies or subsidiaries, how can you be sure of their quality?
When you qualify vendors, you want to make sure their quality management is comprehensive.
That means it applies to every product, every process, and every subcontractor.
Adam has found an inconsistency, and his job is to push for more information and assurances.
Ensuring comprehensive quality management is an essential part of vendor qualification.
So let's practice some more ways of asking about this.
So does every factory get inspected regularly?
Is the health and safety inspection done by an independent auditor?
I'm curious whether these standards apply to all the materials you purchase.
Could we see the maintenance history for these machines?
What does Jenny have to say about their quality management?
Let's hear her response.
Yes, for sure.
Same standards apply across the board.
We're there regularly to do inspections, dealing with any issues as soon as they come up.
Alright then.
Could we pull some of their test reports from the past few years?
Not the whole lot, just a few at random?
Once again, Jenny is being very reassuring, telling Adam that their standards apply across the board or to every person and every situation.
But is it really enough just to believe someone?
We need proof, especially when it comes to quality.
For that reason, Adam asked to see some random test reports.
That is, he doesn't want Jenny just to show ones that make them look good.
He wants her to provide a few reports from different times without selecting just the good ones.
In this way, Adam is pushing for proof of consistency.
Let's go through some more examples of probing, since this is such an important part of vendor qualification.
Do you mind if we have a look through your unsold inventory as well?
I'd love to see some other examples just to make sure they're all the same.
So do all of your runs have the same failure rate?
Is it alright if we check out some finished goods in the warehouse?
So does Jenny respond positively to Adam's push for more proof?
You bet.
You'll just have to give me a bit of time once we're done here.
But yeah, happy to provide that.
Yes, fortunately Jenny is happy to cooperate with Adam's requests.
If a potential vendor doesn't cooperate, it's usually a bad sign.
In any case, the whole process of qualification is meant to uncover potential problems, which you can then ask more about.
Adam's done a great job in this respect.
Now let's practice some of the language we learned in today's lesson.
Imagine you work as a purchasing manager for a clothing company.
You're visiting the overseas textile factory of a potential vendor and you're following up with some questions.
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.
Besides the references, was there anything else I can get for you?
Start by asking for the most recent health and safety reports.
Yes, I'd like to get a copy of your most recent health and safety report.
Sure thing.
I can print that off for you later.
Now say that you also need to take back some samples from the production line.
Answer.
Great!
I'll also need to take back some samples from the production line.
Of course.
No problem.
We'll provide samples of all fabrics you're interested in.
Next, mention that they said they worked with denim, but you didn't see any answer, thanks.
And you said you worked with denim, but I didn't see any on the tour.
I yes, we do all our denim work at another workshop nearby.
Now ask if their quality manager oversees a small workshop as well.
Answer.
I see.
And does your quality manager oversee that workshop as well?
Yes.
He is responsible for quality control throughout the company.
Finally, say that's good, but you'll still need to check out the other workshop.
Answer.
That's good, but I'll still need to check out that workshop too.
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, I just wanted to up on what we discussed last week.
You can say, I just wanted to follow up on what we discussed last week.
After each response, we'll provide the correct answer.
Let's begin.
It's pretty clear that Howard runs a tight at head office.
It's pretty clear that Howard runs a tight ship at head office.
Do you do all the work here or do you anything out to other factories?
Answer.
Do you do all the work here or do you farm anything out to other factories?
Management has agreed to a 2% raise for all employees across the... Answer.
Management has agreed to a 2% raise for all employees across the board.
Rhonda, could you do me a favor and... the stapler from the copy room?
Ronda, could you do me a favor and fetch the stapler from the copy room?
We've reached the end of this lesson, the third in our series on purchasing.
We've learned how to ask for documentation, get samples for quality testing and identify any inconsistencies.
We've also looked at how to ensure comprehensive quality management and push for proof of consistency.
Thanks for listening, and see you again soon.
