Top 6 Tips For Picking The Right Supplier For Your Business | Fusion - WeRIndia

Top 6 Tips For Picking The Right Supplier For Your Business

Top 6 Tips For Picking The Right Supplier For Your Business

Most businesses operate as part of a long supply chain. The materials have to be packaged at the source, then ferried from the source to the business establishment by a supplier. The supplier is tasked with the storage of goods during transit, they are in possession of the materials and will be liable in case of anything.

They are also in charge of the delivery part of the chain. It is only after signing the delivery sheet that ownership is transferred to the business owner. This shows you how important a supplier is to a business chain. The following are tips for business owners on how they can choose the right suppliers and grow their businesses.

●    Gauge The Reliability Of The Supplier

As aforementioned, suppliers are an important part of a business. They could either ruin or make your business, this emphasizes how important the supplier selection process really is. The first thing you have to check is the reliability of the supplier. This can be done by contacting other businesses which they supply to.

Because of the weight of this process, you can personally visit these businesses and politely question the administration. Reliability is gauged by checking if they always deliver the goods on time. The state of the goods during delivery is also important. Are the pex fittings you had sourced from the best pex fittings manufacturer still in good condition? Confirm all of these before you sign any kind of contract with the supplier.


●    Location Of The Supplier

The location of the supplier is another important aspect of the selection process. It is more suitable if the supplier is part of the local community than when they are located somewhere distant. This will ease the relationship between you two as you can walk a few blocks and address the supplier in case of an issue and vice versa.

Getting a local supplier also means that you will be building the local community. This is because the employees of the supply firm will probably be from around the area. Lack of employment is frustrating and depressing and you therefore would be changing the lives of several members of the community.

●    Cost

The cost of contracting the supplier should also be considered. Find a supplier that fits the budget you have set aside for supplies. Budgeting is important for a business because if you do not plan well you will surely suffer some huge setbacks.

To get the most affordable rates, plan an auction and let all the prospective suppliers fight it out for the bid. Award the bid to the supplier that offers affordable rates and guarantees quality service. The terms of engagement may be amended later on when you decide to increase the supply due to business growth

●    Business Values

Find a supplier that has the same business ideals as you. Apart from generating profit a business venture usually has some core business values that govern how it operates. Community building, environmental conservation, youth and women empowerment are just some of these values.

If the supplier does not share these values then the business relationship is likely to be difficult. A supplier that is solely focused on profits and disregards any other thing would be hard to deal with. Someone that greases the officials’ palms to operate and does not value honesty.

●    Always Have A Backup

Carry out the selection process dutifully and select the best choice to supply your business. But keep in mind that your business operation would likely stall in case anything happens with the supplier. In the unfortunate incident that all their supply trucks break down then your business operation delays and you suffer huge losses.

Therefore you should always have a backup plan to protect your business and its integrity. Use at least two suppliers, each should supply half of the materials needed. In case of an unforeseeable accident you will still satisfy some of your clients

●    Flexibility

Pick a supplier who can easily adjust to meet your business’ demands. Change is the single constant thing in this world. Events and circumstances happen everyday and propulse us to another direction. Government policies, weather and increasing demand will force you to slightly adjust your business operations.

You may get a new client who wants a lot of products, technically, the supplies should also be increased to match the demand. Your supplier should be able to accommodate this change at the issue of a suitable notice. Provide an amendment clause in the contract to allow for these changes.

Conclusion

No business entity operates alone. Businesses rely on a supply chain to run efficiently and suppliers are an important part of that. The chain is like a machine, when a cog fails then the business is affected. Thus choose a suitable supplier to enable your business growth.

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