BEP 348 - Purchasing (Part 1): Sourcing Suppliers

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 kinds 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’ll 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 dialog, 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 dialog, 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?

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Vocabulary

Feel free: don’t hesitate; used to tell someone they can do something if they want;
“If you have any questions about your order, feel free to call our customer service
line.”

To check out: to look at or investigate; “We’re sending a team to Vietnam to check

out some new factories.”

Pulley: a system for lifting things, made of one or more wheels and rope or cable;
“Adding wheels to a pulley system will enable you to lift even heavier items.”

Glass-filled polymer: an artificial material that can be molded to manufacture

things; “Rather than traditional plastic, we use glass-filled polymer because it is
flexible and shatter-resistant.”

Grooved: having lines – or grooves – cut into the surface; “Grooved airport
runways dry faster because the water drains more easily along the grooves.”

Flange: an edge on a wheel that helps it stay in position; “The cable keeps slipping
from the wheel because the flange has been completely worn off.”

Bearing: a part of a machine holding a moving, spinning, part; “If the bearing gets
dirt in it, then the wheel can’t spin freely and easily.”

Hardened steel: a strong type of metal made by heating and cooling steel;
“Hardened steel is often used for knives because it can take a lot of pressure and
won’t rust easily.”

Proprietary: owned by a company; “We have a proprietary recipe for our tomato
soup that several companies have asked to purchase.”

Seal: a piece of something, especially equipment, that closes a hole or gap; “An
engine’s head gasket is a seal that ensures compression in the engine and stops oil
from leaking.”

Contaminant: a substance that makes something dirty or polluted; “When

inspectors found contaminants in the water supply, they issued a public warning.”

Reliable: can be trusted to function well, for equipment; “I am willing to pay more
for a reliable vehicle that doesn’t break down often.”

Casing: a covering layer or container; “Oil wells use several layers of protective
casing around the piece of equipment that drills into the earth.”

Fitness machine: a piece of equipment used for exercise; “Treadmills and stationary
bicycles are the two most popular fitness machines at most gyms.”

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Custom: designed and built for a specific person or customer; “None of the
bookkeeping programs available worked for us so we had custom software built.”

Casting: creating something by pouring metal or plastic into a mold; “Japanese

bronze is excellent for casting because of its low melting point.”

Foundry: a factory where glass or metal is heated and shaped to create objects;
“Adding a night shift at our foundry has enabled us to increase output by 35%.”

Carbon: a basic type of steel made from carbon and iron; “Carbon steel is used for
files, drills, and chisels which need to resist vibration.”

Stainless: a type of strong and attractive steel made with carbon, iron, and
chromium; “Stainless steel is used for medical equipment and kitchens because it
can be kept very clean and doesn’t rust.”

Stock: a stock part is made by the company that manufactures the entire piece of
equipment; “If you buy the stock parts from the car company, they’ll cost you
much more than a third-party aftermarket product.”

Supply chain: the series of steps, companies, and locations used to deliver a
product to a customer; “Rising oil prices have affected our entire supply chain and
made it more expensive to ship products overseas.”

Tariff: a tax on products leaving or entering a country; “The new tariffs on meat
products mean that customers in the U.S. are paying more for food.”

Turnaround time: the time it takes a company to do or create something; “We like
the company’s service, but their turnaround time is just too slow for us.”

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Dialog

Jenny: Hi … feel free to have a look around.

Adam: Thanks.

Jenny: …And just let me know if you have any questions.

Adam: Yeah, actually I was just checking out your pulleys. These are glass-
filled polymer, yeah? You also do steel?

Jenny: 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.

Adam: Ah, okay, I see… and you do the bearings on these as well?

Jenny: 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?

Adam: Well, yeah, reliable steel pulleys… but also specialized steel casings… part
of a fitness machine. Do you do custom steel casting?

Jenny: Yes, we have a foundry dedicated to custom work custom… Carbon,

stainless, all types.

Adam: 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?

Jenny: Quite a bit of custom work, actually. And we’re really growing that side of
things. Lots of demand there.

Adam: Mostly in Asia?

Jenny: About 75%. But we’ve got a few big customers in Australia and the U.S.

Adam: Uhuh, and I see you’re in Vietnam…. so Australia is pretty close. But serving
the States probably comes with some challenges?

Jenny: 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.

Adam: 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: 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…

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Debrief

Now let’s go through the dialog 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.

Jenny: Hi … feel free to have a look around.

Adam: Thanks.

Jenny: …And just let me know if you have any questions.

Adam: 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?

Jenny: 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.

Adam: Ah, 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.

Jenny: 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?

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Adam: 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 for 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.

Jenny: Yes, we have a foundry dedicated to custom… Carbon, stainless, all types.

Adam: 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 xFit 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 they 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?

Jenny: Quite a bit of custom work, actually. And we’re really growing that side of
things. Lots of demand there.

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Adam: Mostly in Asia?

Jenny: About 75%. But we’ve got a few big customers in Australia and the U.S.

Adam: Uhuh, and I see you’re in Vietnam…. so Australia is 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?

Jenny: 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.

Adam: 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 US? 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.

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§ 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?
§ How much time are we talking about to fulfill an order to Brazil?
§ 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?

Jenny: 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…

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.

Cue 1: 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:

Cue 2: That’s right. All of these are lightweight aluminum.

Now ask if they also manufacture stainless steel fixtures.
Answer:

Cue 3: Yes, we supply stainless fixtures for many big furniture companies.
Next, ask if they are interested in doing more high-end custom work.
Answer:

Cue 4: Certainly, we do custom work for a few companies, and we’d love to do more.
Now say that it must be difficult for a busy factory to set up for custom orders.
Answer:

Cue 5: We actually have an entire area dedicated to specialized work.

Finally, ask what would be a usual turnaround time on a custom order.
Answer:

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Answer 1: Yeah, I’m curious: are these handles made of aluminum?
Answer 2: I see. And do you also manufacture stainless steel fixtures?
Answer 3: So, are you guys looking to do more high-end custom work?
Answer 3: So, are you guys looking to do more high-end custom work?
Answer 4: But I imagine that it must be difficult for a busy factory to set up for
custom orders.
Answer 5: 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:

Example Cue: The new free trade agreement has eliminated <beep> on imports.

You can say:

Example Answer: The new free trade agreement has eliminated tariffs on imports.

After each response, we’ll provide the correct answer. Let’s begin.

Cue 1: If you have any questions, please feel <beep> to ask me.
Answer:

Cue 2: Having great relationships with shippers helps us manage the supply <beep>.
Answer:

Cue 3: We are looking to buy very <beep> vehicles that don’t break down often.
Answer:

Cue 4: The factory promises an average turnaround <beep> of one week on most orders.
Answer:

Answer 1: If you have any questions, please feel free to ask me.
Answer 2: Having great relationships with shippers helps us manage the supply chain.
Answer 3: We are looking to buy very reliable vehicles that don’t break down often.
Answer 4: 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!

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Language Review

A. Review Quiz

For each question, you must choose the sentence that best fulfills the given
language function or purpose.

1. How might you use display products to start a conversation?

a) So, are these pieces here made of plastic?

b) I don’t really think any of these will be adequate for us.
c) How long has your company been in business?

2. What could you ask to determine whether a supplier has relevant experience?

a) Could you tell me more about your company?

b) Is it possible to place orders through your website?
c) Do you do large commercial jobs too or just residential?

3. How can you ask about a prospective supplier’s business priorities?

a) Do you guys make high-end equipment as well or just compete on price?

b) Has your company been impacted by the economic downturn?
c) Would you be willing to reduce your unit price for larger orders?

4. How might you ask about a supplier’s capabilities?

a) What have you folks done in terms of environmental sustainability?

b) How many of these can your factory produce in a given day?
c) Have you worked with a European company before?

5. What is a good way of asking about turnaround time?

a) Do you have different shipping options?

b) How long would it normally take to make and deliver these to LA?
c) Do you have arrangements with any Asian distributors?

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B. Vocabulary and Idioms

Fill in the blanks with words from the box below. Be sure to put any verbs in the
right tense.

feel check time

reliable supply custom

1. Our tool supplier doesn’t sell the kind of drill we need, so we had a
_____________ one built for us.

2. The next time you’re in town, _____________ free to drop by again and we can
chat about partnership possibilities.

3. We should have spent more money to get _____________ laptops rather than
these cheap ones that keep needing repairs.

4. Finding suppliers located closer to our factory has helped us simplify our
_____________ chain and increase production capabilities.

5. With this new delivery company, we’ve been able to reduce turnaround
_____________ from 15 to 12 days.

6. Did you get a chance to _____________ out the latest sales figures? They’re
pretty impressive.

Study Strategy

Finding the right suppliers is essential to keeping a business running smoothly and
profitably. It doesn’t matter whether you’re purchasing parts or materials to
manufacture goods, or simply paper for your office copiers.

Start by thinking about a few important goods, products, or parts that your
company must purchase. Now think about how much you use and what qualities
are important to you. Are you looking for something reliable, low-cost,
environmentally friendly, or something else? Make a list of these priorities. Also
consider what kind of experience you would want a supplier of this product to have.

Now, with a colleague or friend, imagine you are having a conversation with a
prospective supplier. You can ask not only about experience and capabilities, but
also about business priorities. Your partner can make up whatever he or she likes in
response. Once you’ve asked questions to determine suitability, start again with
another imaginary supplier. When you’ve done this a few times, switch roles and let
your partner try.

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Answers

Listening Questions

1. To start the conversation, Adam comments on some pulleys on display.

2. Adam says that serving the United States might be challenging for a company
in Vietnam.
3. After Jenny mentions tariffs, Adam asks specifically about turnaround time.

A. Review Quiz

1. a; 2. c; 3. a; 4. b; 5. b

B. Vocabulary and Idioms

1. Our tool supplier doesn’t sell the kind of drill we need, so we had a custom one
built for us.

2. The next time you’re in town, feel free to drop by again and we can chat about
partnership possibilities.

3. We should have spent more money to get reliable laptops rather than these
cheap ones that keep needing repairs.

4. Finding suppliers located closer to our factory has helped us simplify our supply
chain and increase production capabilities.

5. With this new delivery company, we’ve been able to reduce turnaround time
from 15 to 12 days.

6. Did you get a chance to check out the latest sales figures? They’re pretty
impressive.

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