Follow These 3 Steps to Find the Best Supplier for Your business

When selecting the right supplier for your business, there are always many factors that should be taken into account before making a decision. For example, you must consider price, payment terms, quality, and service.

If you get a great price for a product of poor or average quality, then your profits won’t last for long as it’s likely your buyers won’t stick around.  

Therefore, it’s crucial you find the best balance between all of these components. Below are 3 steps you can follow to ensure you make the best selection. Here we go. 

1. Conduct an Information Search

The first step is obviously the most simple. Do a quick search via the internet or other means and locate all the providers who meet your most basic product needs. Keep a note of those suppliers and get ready to do the next step.

2. Request Further Information

Beyond the information that’s readily available from the means mentioned above, you must also make a request for further information.

This a great way to establish first contact with potential suppliers, and can be done by the following methods: 

  • Speak With Representatives: Talking to vendors and manufacturer representatives is one of the most valuable and productive sources of getting further information, as it allows you to speak directly with the supplier and ask further questions about the price, quality and what other companies they supply to, etc.
  • Visit the Suppliers’ Premise: It would be ideal if you can have a team visit the suppliers Premise to get a direct observation of the suppliers equipment and personnel. Of course, this may not always be possible due to various constraints. However, you should at least get a digital tour.

3. Evaluation and Selection

From your shortlisted suppliers, you must then evaluate and rank them against each other for your required criteria. Think about their differences in price, quality, payment, discounts and delivery, etc.

Once the vendors have been ranked against each other, proceed to make a choice of which supplier offers the best product and the conditions for your company needs.

Remember that the cheapest offer is not always the most convenient; Aspects not directly related to the products, such as after-sales service, warranty period, and customer service should also be considered. 

Finally, do not forget to take into account the prestige of the supplier, its location, facilities, technical strength, financial capacity and organizational and administrative level.