Nice people to do business with?

HH Associates buys a great deal of print, and there's no doubt the firm is in a powerful position when it comes to negotiating terms with some of its print suppliers. Some. Certainly not all.

I'm wondering whether the firm's recent travails involving an inadequate grip on financial controls across its worldwide operations will have given the directors pause for thought about one or two other things. I'm sure there will have been some 'interesting' client conversations as a consequence, as HH has the sort of blue chip customers that tend to crawl all over one's accounts anyway. But I also wonder if they've thought afresh about how the group is perceived by its supplier base. And, indeed, how important those supplier relationships are?

As a PrintWeek forum member rightly pointed out, a company like HH is only as good as its suppliers. The firm's HHub system is by all accounts extremely impressive, but when it comes to the physical deliverables HH needs its print suppliers to perform in order for it to do so too.

I'm not sure if the firm has a supplier charter, I can't find one on its website, but here's how it describes its method of print management: "Because we're independent, we operate in the most competitive environment and always source the best quality print at the best price for our clients. The scale of the HH network means we have powerful negotiation leverage when it comes to the bottom line. We work hard to maintain a solid and reputable network of suppliers who can deliver to our high standards. We only accept a supplier onto our approved list once they pass our stringent factory inspection, and prove compliance with our rigorous safety standards."

I can't imagine that many of these solid and reputable suppliers are too chuffed at having their own cashflow squeezed with extended payment terms. Here's a couple of questions: Do suppliers like doing business with HH? Would they want to do more business with them? Would they, given the option*, want to do any business with them?

HH is no different in its mode of operation to many other print managers, of course, and maybe such considerations are irrelevant.

But I'm seeing a trend among what I would describe as quality print providers whereby they are being increasingly picky about who they deal with and on what terms.

Anyone whose business model requires quality print supply on tap would do well to keep that front of mind.

 

*Obviously all business owners ultimately have a choice about who they do business with.