Forget about tech, your employees, your sales team, your customer service offering and just about any other part of your business that you might value highly – your suppliers are probably the most important part of your business.
Without them, you simply wouldn’t be able to operate. Not only that, but a good supplier can make your business in the same way a bad one can break it in half.
It’s why most businesses want their suppliers to feel like an extension of their team. It doesn’t matter whether you are thinking about signing a five-year contract with an IT management company nearby or an electronic manufacturing supplier in Taiwan, the principle remains the same: good client/supplier relationships are effective, productive and rewarding.
As such, we have pulled together a list of things for you to consider when choosing your next suppliers:
1. Know The Total Cost
When you are procuring a supplier, it can be easy to hone in on the direct costs, add these up and presume you have figured out the total. But this is very rarely the total cost of ownership.
To figure that out, you need to factor in the other components of the deal, such as transportation costs, the logistics of successful delivery, product quality, ease of communication, language barriers and all that stuff which will add to the total cost.
2. Quality Is King
Your reputation relies on your supplier because it’s them who will be providing you with the product.
That’s why you need to make sure quality is a priority of your procurement strategy. But it’s not just about having a supplier that will deliver a product that’s quality in the sense of Amazon reviews and being value for money; it’s quality as in compliant with rules, regulations, and safety too.
3. Extra Capabilities
In the same way, you probably hire employees that are able to do more than just their role, it’s important you look for suppliers that have other qualities.
It won’t just save you from a few migraines down the road, it will help boost your business in ways you weren’t expecting. It could be that they have insider knowledge on the marketplace, or have a foothold in the global market, or they can provide storage, their own distribution, packaging, anything that will give you added leverage from which to reach success.
4. The Crown Of Consistency
The secret to a successful business is repeat business.
That’s why you need to promise consistency to your client or customers. That’s what they expect from your brand.
They expect the thing they buy this time round to work and perform in exactly the same way as the last time they bought from you.
So it’s no wonder why evaluating a supplier’s consistency is another best practice used by industry experts, no matter the industry in question.
It’s that sense of being able to rely on your supplier while simultaneously eliminating any risks that might arise.