Find the right supplier for your business is vital, even though you wish to stay with the same supplier over your lifetime, but it’s impossible for all your business. So, supplier selection is now a key organizational capability for where you are in the lifecycle of your business. So how do choose the right suppliers? Here are some key tips for your reference.
Pick the right people
Right people can bring sunshine, in the opposite, wrong choice can leave you in the dark. As people, we’re not all compatible, and the same is true of businesses. Even if you go into a relationship committed to good communication, openness, and fairness, but the supplier does not, then this is still likely to result in an unsatisfactory arrangement.
Nobody wants to work with an unreliable supplier, good relationships depend in part on picking the right people. Before business, try to know the person you talked with as much as you can. Sometimes, what the person tells you, may not be what he or she can provide you. But his or her resume can guide you to do the right decision. Try to know their history with old companies and customers, which may surprise you.
Analyze the quotation
Sometimes, it’s an important step for the business. One quotation form reflects important information of the supplier, you should not pay attention to price only. Even though businesses often choose suppliers based predominantly on cost, and seem happy to chop and change to get what they see as the best price for the product or service. However, rarely will this be the most efficient way of doing things, since searching for and arranging contracts with new suppliers introduces further costs. And the longer-term cost from reputational damage due to poor quality control and order fulfillment can make any initial price-based saving inconsequential.
Aim to form longer, stronger bonds with a smaller number of suppliers. This offers better value than the regular turnover in contracts. So again, looking for quality and reliability, value for money, and most importantly strong service and clear communication from the off is critical for getting the most out of your supplier relationships.
Research the samples
Before order, it’s normal for checking samples from different suppliers. From this section, you will see the different grade quality, different packaging, different sample mark, etc. To make sure the supplier has the right experience, and check their engineering abilities, the right partner will make these engineers available to supplement your own engineering efforts, while working with your team to make sure they can produce what you are making.
Think strategically
The potential supplier should be able to exceed your expectations. Think not only about what you need in the next few months but long term. If your goal is to provide your customers with faster deliveries in the following year, you should make sure that your supplier is ready and able to meet this need when the time comes. In this way, you will know their capacity well.
