1. Cost Related Reasons
1.1. Pricing too high and non-competitive.
1.1.1. Material costs are too high.
1.1.1.1. Lack of a strong, trained Purchasing/negotiating team.
1.1.1.1.1. Inadequate knowledge and/or resources……
1.1.1.2. Purchasing staff spread too thin
1.1.1.2.1. Inadequate revenue to support additional hires.
1.1.2. Seeking a profit margin that is not tenable in the industry.
1.1.2.1. Salesperson(s) is/are not collecting and transmitting to the appropriate people, the necessary word- on-the-street.
1.1.2.1.1. Sales function not trained/properly directed in that aspect
1.1.2.2. Company ownership seeking unreasonable profit margins that are not commensurate with market conditions.
1.1.2.2.1. Company management vision misaligned
1.2. Pricing too low.
1.2.1. Quotation errors/oversights causing credibility issues.
1.2.1.1. Lack of a strong, trained estimating/pricing team.
1.2.1.1.1. Inadequate knowledge and/or resources……
1.2.1.2. Estimating/pricing staff spread too thin
1.2.1.2.1. Inadequate revenue to support additional hires.
1.3. Over dependence of third party outside suppliers.
1.3.1. Make/Buy decision making process is weak/non-existent
1.3.1.1. Inadequate knowledge and/or resources……
1.3.2. Lack of internal resources/machines.
1.3.2.1. Inadequate revenue to invest in additional resources/machinery/automation.
1.3.3. Bottleneck at the rate controlling operations creating long delays.
1.3.3.1. Knowledge of scheduling best practices inadequate.
1.3.3.1.1. Inadequate knowledge and/or resources……
2. Other reasons NOI
2.1. Do-it yourself mindset of company ownership
2.1.1. Company management vision misaligned
2.2. Could not overcome incumbent advantages of existing entrenched supplier
2.2.1. Inadequately trained/ experienced sales personnel.
2.3. Ineffective sales pitch.
2.3.1. Poor bid presentation
2.3.1.1. Inadequately trained/ experienced sales personnel.
2.3.2. Poor communication of bid value
2.3.2.1. Inadequately trained/ experienced sales personnel.
2.4. Customer "kicking the tires"- getting additional quotes to meet internal procurement policies.
2.4.1. Inadequate vetting of customers at the time of bid process inception.
2.4.1.1. Inadequately trained/ experienced sales personnel.
3. Quality (Company/Product & Service) Related Reasons
3.1. Lack of reputation - too few years in business
3.1.1. Failure to highlight other strengths.
3.1.1.1. Sales function not trained in leveraging strengths
3.2. Loss of reputation
3.2.1. Inadequate damage control, reputation repair and messaging.
3.2.1.1. Sales function not managing the fall-out
3.3. Failure to evolve out of a Make-to-Order (MTO) operation and develop products
3.3.1. Lack of market research
3.3.1.1. Inadequate knowledge and/or resources……
3.3.2. Lack of expertise to develop own products
3.3.2.1. Inadequate knowledge and/or resources……
3.3.3. Inability to recognize productizing opportunities at customers
3.3.3.1. Sales function not trained/properly directed in that aspect
3.4. Product nearing end of life cycle (For companies with products)
3.4.1. Lack of innovation for new products
3.4.1.1. Inadequate knowledge and/or resources……
3.4.2. Lack of upgrades to existing products
3.4.2.1. Inadequate knowledge and/or resources……
3.4.3. Inadequate features
3.4.3.1. Inadequate knowledge and/or resources……
3.4.4. Poor quality
3.5. Quality issues – creating one-time, non-repeat customers.
3.5.1. Poor product quality.
3.5.1.1. Manufacturing operations and quality systems deficient.
3.5.1.1.1. Inadequate knowledge and/or resources……
3.5.1.2. Too much dependence on manual processes and inspections.
3.5.1.2.1. Inadequate knowledge and/or resources……
3.5.1.3. Non-capable machines and processes.
3.5.1.3.1. Inadequate knowledge and/or resources……
3.5.1.4. Lack of supplier quality control
3.5.1.4.1. Inadequate knowledge and/or resources……
3.5.1.5. Inadequately trained people
3.5.1.5.1. Inadequate knowledge and/or resources……
3.5.2. Poor after-sales support.
3.5.2.1. Careless sales personnel.
3.5.2.1.1. Sales function not properly directed
3.6. Compliance shortcomings.
3.6.1. Certifications lacking (ISO/TS EU-RoHS).
3.6.1.1. Engineering inadequacy to properly vet the project feasibility.
3.6.1.1.1. Inadequate knowledge and/or resources……
3.6.1.2. Salesperson not properly vetting RFQ’s.
3.6.1.2.1. Sales function not trained/properly directed in that aspect
3.6.2. Failed customer quality audit.
3.6.2.1. Manufacturing operations and quality systems deficient.
3.6.2.1.1. Inadequate knowledge and/or resources……
3.6.3. Failure to highlight score cards/prior audit results from other customers.
3.6.3.1. Inadequately trained/ experienced sales personnel.
3.6.4. Fell short in supplier self-evaluation assessment questionnaire.
3.6.4.1. Manufacturing operations and quality systems deficient.
3.6.4.1.1. Inadequate knowledge and/or resources……
3.6.5. Perceived as high-risk supplier.
3.6.5.1. Data integrity/ cyber security weakness.
3.6.5.1.1. Inadequate knowledge and/or resources……
3.6.5.2. Geographic incompatibility for logistics and proximity.
3.6.5.2.1. Sales function not trained in leveraging strengths
3.6.5.3. Labor relations - unionized or not.
3.6.5.3.1. Sales function not trained in leveraging strengths
3.6.5.4. Capacity at max.
3.6.5.4.1. Sales function not trained in leveraging strengths
3.6.5.5. Company size
3.6.5.5.1. Sales function not trained in leveraging strengths
3.6.5.6. Potential customer concerned about inadequate working capital.
3.6.5.6.1. Sales function not trained in leveraging strengths
4. Service-Related Reasons
4.1. Long lead times
4.1.1. Bottleneck process overscheduled
4.1.1.1. Knowledge of Scheduling best practices inadequate
4.1.1.2. Salespeople influence Production Managers for unfair favoritism and prioritizing of their customer jobs
4.1.1.2.1. Inadequate management leadership
4.1.2. Lack of machines/capacity
4.1.2.1. Inadequate revenue/capital to invest in additional resources/ machinery/ automation.
4.1.3. Inability to add extra shift - lack of people.
4.1.3.1. Inadequate revenue/capital to invest in additional resources/machinery/ automation.
4.2. Bid proposal / quotation took too long to submit.
4.2.1. Lack of a strong, trained estimating/pricing team.
4.2.1.1. Inadequate knowledge and/or resources……
4.2.2. Estimating/pricing staff spread too thin
4.2.2.1. Inadequate revenue to support additional hires.