A supplier plays an important character for every business. A supplier can be a provider of services or goods that a business, in turn, adds value to or resells. The quality of a supplier a business has impacted or affects directly the quality of service or product delivery. It is vital to select your supplier for the correct reasons.
When you put conditions and considerations you can easily select those suppliers who satisfy the status of your company. There is a supplier for every class and size of a business. For instance if you are in capsule filling machine industry, you can get multiple quality automatic capsule filling machine suppliers. Not every supplier that operates, is a genuine partner to bank on and build your business on.
Following are tips and considerations that will aid you in getting the best suppliers to partner with your business.
Supplier Capacity and Reliability –
Which method you as an organization are considering as a supplier being capable of meeting your needs. How long have they been to have in the market? What is their production level and capacity of pressure they are under from their existing customers?
Consider the track record and reliability the company might have. If you have to provide quality hot air ovens, you need to contact quality hot air oven manufacturers. You might have to speak to other clients who are already using hot air ovens of this specific supplier to get a second or third opinion. Without proper references, you have to assume the supplier is reliable.
Similarly, consider the levels of inventory that a supplier keeps at any given time. This will show you whether your order will be fulfilled instantly the next time you place an order.
Corporate Value System –
Business’ value system explains to you what they believe in and their usual work ethic. Always research the value systems and pick suppliers who want to live as per their value in real life. Values become the character definition and habits of the people serving you. However, a few suppliers only hang values on the wall where it all ends.
An organization would rather have three values that they live by and advocate for than have ten flowery values that remain imaginary. Are the values telling you, in any way, anything about the customer focus, the service delivery, etc.?
Find that supplier who matches your beliefs and values. A supplier who does not play in a bid to make a sale. A supplier is reliable who would lose an order than supply imitations imitating to be supplying originals.
Quality of Products –
Most companies thrive as they offer quality products. You might have salespersons who are jovial, have a positive attitude, and always smile; however, if the product range you are selling leaves a lot to be desired regarding quality then your service kills the business growth. No one will want to resell products that are not trialed and tested.
One thing most clients try to avert is the need to manage the rebounds or return. It directly affects productivity and notoriety. I have seen that each time I have given goods and services to a client and there are a few concerns and rebounds, I have needed to stay at work past 40 hours to hold that client than in situations where I have given an item of superior grade. In such cases, clients have gone out and complimented my business and therefore, turned into my quiet salespersons.
Proximity and Distance –
This is a crucial consideration. You can retain suppliers in other countries outside of yours. Consider that a delay is always there in shipment that occurs between the time of order placement and getting the order into your stock room.
You might have to keep in contact with suppliers that also close where you run out and get urgent orders. If you manage imports properly you can get all your material from other countries. In that case, distance ceases to be an issue. The advantage of dealing with smaller local suppliers is that you need a backup plan. In the case of returns, it becomes an easy process to get the product back to the supplier without massive transportation costs
Competitive Pricing –
Businesses desire to multiply their profits. After all, they are in the business to make a solid and consistent profit for the benefit of their stakeholders. One method to increase profits is to make sure you do not purchase your inputs unnecessarily from expensive suppliers.
Having registered suppliers along with a consistent relationship with existing suppliers permits the client to leverage on pricing. They get negotiating room for bulk purchase discounts. In many companies, even after picking a pool of suppliers to deal locally and abroad, there is a policy for purchase staff to get three quotations for one product from different suppliers.
The difference of $5 in price always makes a difference in your pricing of a similar product. The objective is to make sure they get the best pricing possible to forward the same advantage to the end-user.
After Sales Support –
Depending on the product nature you intend to procure from a supplier, you have to establish what happens in case they have sold you the products and you now require support and technical assistance.
Always determine the capacity to support you after-sales get closed. Similarly, you also have to hire or develop skills to make sure they give the first level of maintenance and support of the equipment you are selling.