Every successful business owner and manager knows and understands that one of the most important components of their core business model and one that is absolutely essential to the success of their company is the suppliers they choose.
So, with that in mind, here for your information, and of course reading pleasure, is a comprehensive guide on how to choose the best suppliers for your business.
Keep Your Options Open
One of the biggest mistakes companies make, especially those who are just starting out or have had, up until this point, no particular plans to grow and expand, is sticking with the same supplier that they always have done.
There are essentially three different criteria to use to evaluate potential businesses who may well be supplying your company in the future:
- Their Reputation
Find out what other similar (and even rival businesses) are saying about this particular supplier and what the supplier’s general reputation is in the industry.
- Their Business Type
Secondly, it is important to assess what kind of company supplier is best for your business; it may well be the case that you need an expert and specific supplier who deal in only one product, for example if you work in wound care and need high-quality products in bulk.
- Their Levels of Security
Finally, it is also essential to check whether each and every potential supplier you choose has adequate insurance in place and also quality fraud protection policies.
Be Clear On Your Criteria
This is your business and at the end of the day, you must always make the right decisions to support not only its longevity moving forward, but also the right ethical choices too. Never compromise on what it is you want and what it is you are looking for and always keep your own company’s criteria at the forefront of your mind.
Such criteria to consider could include:
- Payment Conditions and Terms
- Return Policy & Turnaround Time for Returns
- Ideal Lead Time
- Drop shipping Capabilities
- Quality Assurance Processes
- Payment Terms & Conditions
Always Evaluate Each & Every Bid Submission
After you have used the above criteria to compare and contrast each potential supplier to your business and you have received bids from more than one supplier, it is then time to evaluate each and every bid submission.
Pricing is obviously a large consideration as the bottom line is to ensure that your ultimate profit margin is as impressively high as it possibly can be.
Other things to look for when evaluating each bid submission and comparing them to each other include:
- Be consistent with each and every bid and do not be swayed by limited time offers
- Check out the ethical standpoints and sustainability factors of each supplier
- Understand what ‘value for money’ actually means in terms of how this applies to your individual business model
- Always contact each and every separate supplier who has placed a bid, whether or not they have been successful
