Making The Most of Every Opportunity

Make Sure You Are Ready When Opportunity Strikes

In 1907, Baden-Powell, an English soldier, devised the Scout movement's motto: “Be Prepared.” This rings true today in all walks of life particularly in business.

Make Sure You Are Ready When Opportunity Strikes.

You have been pursuing a meeting with that target customer for some time. You finally get an appointment to discuss becoming a supplier.  You are certain your product/service is first class and can really add value to their business, but there are other barriers that you need to prepare for. Small businesses have many advantages over larger competitors, they are agile, innovative, and often provide specialized products and services. These qualities make them attractive partners for large Australian corporates, but stepping into this arena requires preparation. At MCP we have a collective 25 years of relationships with large corporate customers as both an executive at other large corporates and within SMEs.  As is the key to any commercial partnership, understanding what will make the relationship a success is critical from the beginning.

Here are some essential steps small businesses can take to get ready to trade with big corporations.

1. Know Your Potential / Target Customer

Before you approach a large corporate, it's crucial to do your homework. Take the time to understand their business inside and out. Learn about their strategy, values, and objectives. This allows you to align your business strategies with theirs, demonstrating strong partnership potential. A great place to start is to read their shareholder collateral, annual reports, analyst presentations, and strategy decks.  Most ASX-listed companies will have these itemised on their website under their disclosure obligations. Review their strategy, they will be quite open regarding where they want to focus in the coming year, where their pain points are, and what efforts they are making towards their governance KPIs. Use this within your narrative pitch to frame your business, to show how your business can build a bridge to these goals. Importantly show them how your potential relationship can add value.

Dive into Their Systems

Large corporations often rely on complex systems and processes to manage their operations efficiently. While you may not need to be an expert, having a good understanding of how their systems work can be a game-changer. This includes understanding their procurement processes, communication systems, and even their sustainability practices. Adapting your operations to align with theirs can create a more seamless partnership. For example, many retailers utilise procurement platforms or EDI (Electronic Data Interchange) which refers to the electronic interchange of business information using a standardized format; a process that allows one company to send information to another company electronically rather than with paper. To trade with them you may need to comply.

Some examples based on MCP’s experience.

Packaging Covenants and EAN Australia Standards for Product Packaging.

The Australian Packaging Covenant (APC): The Australian Packaging Covenant is a sustainable packaging initiative that encourages businesses to take responsibility for their packaging waste. Small businesses are increasingly recognising the importance of sustainability and responsible waste management. Complying with the APC not only aligns your business with ethical and environmental principles but also opens doors to partnerships with ASX-listed corporations. By reducing packaging waste and implementing sustainable practices, small businesses can appeal to a broader customer base, participate in corporate supply chains that prioritize eco-friendly partners, and improve their long-term sustainability.

Verification for Barcodes: GS1 Australia provides barcode verification services that ensure your product barcodes meet international standards. For small businesses, this verification is essential because it guarantees product visibility, accuracy, and reliability within the supply chain. Compliant barcodes help you trade with larger retailers and corporations that require standardised product identification. There are also a number of product libraries where photographs and measurements of your products will need to be lodged for shelf planograming purposes. By adhering to these standards, small businesses can access more extensive distribution networks, gain customer trust, and enhance their market presence. GS1 Australia verification streamlines the process, helping small businesses meet the expectations of larger partners, leading to increased opportunities and growth. https://www.gs1au.org

Logistics Requirements

When small and medium-sized enterprises (SMEs) decide to supply large Australian corporates, they enter a realm of stringent requirements and expectations regarding logistics. These are often associated with minimum and maximum order quantities, specific pallet configurations, and precise delivery methods. Comprehending these implications is critical for SMEs aiming to establish fruitful partnerships with corporate giants.

Minimum and Maximum Order Quantities: Large corporates often demand consistent supply to meet their operational needs. They set minimum order quantities to ensure a steady flow of products. While this can guarantee sales volume for SMEs, it may also require them to ramp up their production to meet these minimums. On the flip side, large corporates might have maximum order quantities to maintain a manageable inventory. SMEs must strike a balance between fulfilling minimum requirements and avoiding overproduction, aligning their production capacity with corporate demands.

Pallet Configurations: Pallet configurations are of paramount importance in supply chain management. Large corporates have established warehousing and logistics systems that are optimized for standardised pallet sizes and types. SMEs need to adapt their packaging and distribution methods to align with these configurations. Failure to do so may result in rejected shipments, extra handling costs, or non-compliance with corporate standards. Adhering to the prescribed pallet configurations can streamline the entire supply chain process.

Delivery Methods: The delivery methods required by large corporates are often well-defined. SMEs must consider issues such as delivery schedules, time frames, and consignment tracking. Additionally, meeting safety and quality standards for transportation is crucial. These corporates often have preferred logistics partners or in-house logistics systems, and SMEs may need to integrate with these systems for a seamless supply chain. By accommodating the delivery methods preferred by large corporates, SMEs can ensure timely, secure, and cost-effective deliveries, enhancing their reliability and credibility as suppliers.

Modern Slavery Compliance

The Australian Modern Slavery Act requires businesses to identify and address modern slavery risks in their operations and supply chains. Once a business reaches $100m in turnover they are required to make a statement that indicates where they are with their understanding of the weaknesses within their supply chain and what it is that they are doing to remove these. These are published on the Modern Slavery Register (www.modernslaveryregister.gov.au) and are easily accessible. To trade with large corporations, it's essential to ensure your business is compliant with this legislation. Articulate your supply chain thoroughly, demonstrating that you've taken every measure to ensure no human rights violations exist in your business or any of your suppliers.

2. Communication is Key

Effective communication is at the heart of any successful business partnership. Be ready to participate in open and transparent dialogue. Timely and responsive communication demonstrates your commitment and adaptability, both of which are highly valued by large corporations. Be ready to complete paperwork prior to engaging so that once you sell yourself in there is the least amount of friction that being unprepared may bring. Most importantly build relationships up and down the customer hierarchy.  You’d be surprised how important junior team members within customers can be to completing transactions.  Try also to develop deeper relationships so when staff inevitably move on, or you need to escalate an issue you can do so without impacting business continuity.

Being effective in communication is also ensuring you listen.  Frequently opportunities to expand range, service offerings, and revenue will come out of business discussions.  Engage in conversations around the customer and where they are going, what they need etc.  These represent opportunities to increase share of wallet or to at least connect another small business into them.  Offering solutions makes you a formidable business partner.

Be Agile and Reliable

Small businesses often have the advantage of agility and personalised service. Showcase your adaptability, reliability, and attention to detail. These traits can set you apart in a sea of corporate suppliers. Be prepared to provide solutions and address issues promptly. Make sure you are prepared to respond to requests with measured responses. For instance, don’t say you can do something you can’t do on the spot.  Get your facts straight and respond accordingly if you can’t do something say so.

3. The Right Legal and Financial Structure

Trading with large corporations often comes with increased demands and obligations. Ensure your business is structured in a way that can handle the workload. You may need to make legal and financial adjustments to accommodate larger transactions and meet the corporation's requirements.

Small businesses can unlock immense growth and value-creation opportunities by targeting large Australian corporations. Many locally listed companies will have programs around local sourcing and will be open to trading with you. The trick is to be ready and as painless to deal with as possible.

The concepts discussed above are by no means exhaustive, but a great place to start getting ready. The key is to prepare thoroughly, be ready to adapt, and demonstrate a commitment to excellence and ethical business practices. Trading with large corporations can lead to significant growth, but it requires dedication and a deep understanding of your potential partner's business and expectations. With the right approach, the journey to trading with large corporations can be a path to remarkable success.

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If you'd like to express an interest in partnering with Marlton Capital Partners, please email

contact@marltoncapitalpartners.com.au.

Please share with us a summary of your business, your industry, and why you are interested in partnering with Marlton Capital Partners.

Disclaimer: This article serves as a guide and is not intended as financial or investment advice. Seek professional advice before entering into any equity partnerships.