There are many important relationships to develop in operating a business and of these, it is critical to have good relationships with your business suppliers because they can make or break a business. So, choose each business supplier carefully. Choose good suppliers that will help you long-term and not weak ones that will saddle your business with problems.
What is the Importance of a Good Business Supplier?
Suppliers have a critical role in the output of a company in terms of sourcing the right materials with prescribed quality, finding good options, and offering the right purchase price. Suppliers can offer significant value to a company by providing timely goods and services. They can help minimize inventory thus freeing up cash and minimizing inventory obsolescence. A good business supplier will provide reliable high-quality goods and services and favorable pricing. Thus improving the competitive position of a company. They can offer innovation and technological advances. And they may be able to offer financing assistance to a loyal and good-paying customer.
How to Choose the Right Business Supplier
First, set the criteria that you will use to select a business supplier. These include ideal lead times, maximum and minimum order quantities, dropshipping capabilities, quality assurance processes, payment terms, and conditions, return policy, and communications processes and standards.
Second, examine the key qualities of each business supplier. Those will include reliability, quality, value for the money, financial security, communications, and a partnership approach.
Third, look for supplier candidates by getting referrals, consulting trade associations, searching business supplier directories, and consulting with business advisors.
Fourth, draw up a shortlist of potential suppliers and compare the candidates.
Fifth, seek and then evaluate bids against your selection criteria. Then make your selection.
Sixth, monitor the performance of each business supplier.
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