•   Exclusive

The lure of “earned preferential treatment”

EPT is viewed as the reward for being a good customer. But what does it mean, and how do you achieve it for lasting results and competitive advantage?

Subscriber: Log Out

Sorry, but your login has failed. Please recheck your login information and resubmit. If your subscription has expired, renew here.

This is an excerpt of the original article. It was written for the March-April 2021 edition of Supply Chain Management Review. The full article is available to current subscribers.

March-April 2021

Last night, my wife and I shared a socially distanced bonfire with a few friends. One was a retired physician who is spearheading the vaccination effort in the small New Hampshire city where I live. New Hampshire has had its challenges getting needles into arms like everywhere else, but it seems as if we’re breaking through the log jam. For example, between week 1 and week 3, they’ve tripled the number of people they can vaccinate in a day, and they’ve expanded from five days a week to seven days a week. At least for now, there has not been a shortage of vaccines. I know there is a long way to go, but you can feel it picking up speed. Call me…
Browse this issue archive.
Already a subscriber? Access full edition now.

Need Help?
Contact customer service
847-559-7581   More options
Not a subscriber? Start your magazine subscription.

There has always been something different, something attractive about the phrase “earned preferential treatment” (EPT). It implies that the buyer and their organization is treated differently—like a VIP. It implies perks and benefits not available to others. It implies strongly that the firm is important to the supplier and there exists goodwill and trust between the buyer and the supplier. Yet, a challenge facing most organizations is that of how to win this status.

Many organizations think that you gain this benefit by virtue of better transaction management—paying on time. Other equate EPT with the volume of business—the more that you buy, the more likely you are to gain EPT. The reality is that these views are both right—and both wrong. They are incomplete. They do understand that such a status is a prize that is gained by a process. At the heart of this process is an important issue: “Are you a good customer?” It is the position of this pape that you cannot earn EPT unless you are seen by your suppliers as being a good customer. However, as will discussed at the end of this paper, being a good customer, while important, is not enough by itself.

Earned preferential treatment

Here we will explore the concept of EPT by answering the following questions:

  • What is EPT?
  • Why is EPT even more important now than in the past?
  • What does it mean to be a “good” customer?
  • Is being a good customer enough?

This complete article is available to subscribers only. Log in now for full access or start your PLUS+ subscription for instant access.

 

SC
MR

Sorry, but your login has failed. Please recheck your login information and resubmit. If your subscription has expired, renew here.

From the March-April 2021 edition of Supply Chain Management Review.

March-April 2021

Last night, my wife and I shared a socially distanced bonfire with a few friends. One was a retired physician who is spearheading the vaccination effort in the small New Hampshire city where I live. New Hampshire has…
Browse this issue archive.
Access your online digital edition.
Download a PDF file of the March-April 2021 issue.

There has always been something different, something attractive about the phrase “earned preferential treatment” (EPT). It implies that the buyer and their organization is treated differently—like a VIP. It implies perks and benefits not available to others. It implies strongly that the firm is important to the supplier and there exists goodwill and trust between the buyer and the supplier. Yet, a challenge facing most organizations is that of how to win this status.

Many organizations think that you gain this benefit by virtue of better transaction management—paying on time. Other equate EPT with the volume of business—the more that you buy, the more likely you are to gain EPT. The reality is that these views are both right—and both wrong. They are incomplete. They do understand that such a status is a prize that is gained by a process. At the heart of this process is an important issue: “Are you a good customer?” It is the position of this pape that you cannot earn EPT unless you are seen by your suppliers as being a good customer. However, as will discussed at the end of this paper, being a good customer, while important, is not enough by itself.

Earned preferential treatment

Here we will explore the concept of EPT by answering the following questions:

  • What is EPT?
  • Why is EPT even more important now than in the past?
  • What does it mean to be a “good” customer?
  • Is being a good customer enough?

SC
MR

Latest Podcast
Talking Supply Chain: The last-mile tech advantage
Last-mile delivery success depends on many aspects of the supply chain to work effectively together, but none is more important than the…
Listen in

Subscribe

Supply Chain Management Review delivers the best industry content.
Subscribe today and get full access to all of Supply Chain Management Review’s exclusive content, email newsletters, premium resources and in-depth, comprehensive feature articles written by the industry's top experts on the subjects that matter most to supply chain professionals.
×

Search

Search

Sourcing & Procurement

Inventory Management Risk Management Global Trade Ports & Shipping

Business Management

Supply Chain TMS WMS 3PL Government & Regulation Sustainability Finance

Software & Technology

Artificial Intelligence Automation Cloud IoT Robotics Software

The Academy

Executive Education Associations Institutions Universities & Colleges

Resources

Podcasts Webcasts Companies Visionaries White Papers Special Reports Premiums Magazine Archive

Subscribe

SCMR Magazine Newsletters Magazine Archives Customer Service

Press Releases

Press Releases Submit Press Release