In today’s increasingly connected global economy, there is rarely a shortage of available suppliers. But quantity does not always mean quality. Also, the term “supplier” isn’t used solely in reference to vendors that provide the raw materials for production, shipping, warehousing, and so on. “Supplier” may also refer to enterprises or individuals building an integrated supply chain database system, engineering a tailored software program, or constructing AI algorithms for automating internal processes. Whether companies are in the startup stage or already well established, at some point in time they will seek to engage with new suppliers or become the suppliers of targeted customers.
To ensure you find the best suppliers for your company’s unique needs, keep the following tips in mind throughout the selection process.
Locating New Suppliers
Conferences, trade publications (both online and in print), and targeted internet searches are all tried-and-true methods for connecting with potential suppliers. Of course, attending conferences is the most costly tactic, and may be out of reach for startups that don’t yet have the capital for travel and accommodations. However, even in the age of emails and text messaging, face-to-face meetings continue to serve as an effective networking technique.
Searching online trade publications is an ideal option, as many are free of charge and allow suppliers to pay for advertising. The same can be said for printed trade publications, except there is usually a subscription cost associated with these. For a completely cost-free option, simply conducting an online search can reveal valuable information about a supplier, in the form of reviews, ratings, and testimonials. Case studies may also be available, offering specific project examples and providing a deeper view into the suppliers’ practices and values.
Assessing New Suppliers
Cost, of course, is a key consideration for any new supplier assessment. However, it shouldn’t be the only concern; neither low nor high prices alone necessarily mean anything. Higher prices do not ensure that the supplier is reliable, and lower prices don’t always point to poor quality. If certifications are required, this should be one of the main benchmarks on the supplier checklist. And keep in mind that overseas suppliers should always be viewed from a geopolitical context; tariffs, labor issues, compliance requirements, and exchange rates all factor into the cost, time, and scope of a job.
As you begin to dive deeper into research on suppliers, focus less on general attributes — which may include basics such as target market segments, how long they’ve been in business, overall costs, and location — and more on specifics, such as average delivery times, payment terms, and the data they provide customers either before, during, or after production.
If the supplier is local, then an in-person meeting may provide the opportunity to tour their facilities. The more information suppliers provide to their customers, the better; this holds true for the initial contact as well as throughout the production and delivery process.
A supplier’s responsiveness should be a key factor in determining whether they are collaborative and communicative, or view their customers merely as a means to a financial end. Indeed, the underlying goal of business is to generate revenue, but without the trust of paying customers whose needs must be met, there will be no long-term stability for anyone involved.
The Takeaway
Ultimately, business is a human endeavor, built by humans for other humans, and finding the right supplier for your unique needs should be a top priority — one that involves careful planning, assessment, and consideration. Following the tips outlined above will help ensure that you find the right fit.
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