Businesses in a range of industries rely on other businesses to supply them. The suppliers that a business works with can become integral parts of their supply chains, making choosing the right ones an important choice. Here’s what you need to know to pick the right suppliers for your business.
Evaluate Your Needs
Before you start searching for suppliers, you need to be clear with yourself about what you are looking for. Every business is different, so your requirements should reflect your individual needs, not anyone else’s. Ask yourself how crucial each supplier will be to your overall supply chain. Your demands will naturally be greater for businesses whose performance is essential to your own.
That said, you shouldn’t be afraid to demand high standards from even the least important supplier. After all, the success of your business depends on them.
Draw Up a Shortlist of Suitable Options
Instead of immediately placing an order with the first suitable supplier you come across, you should compile a list of suitable options and whittle them down to a final choice. If you aren’t sure where to begin your search, you can use platforms like Octopart to help you out. Octopart is a search engine for finding datasheets and suppliers for electronic components. You can find any component you need on Octopart, from an eeprom to a basic rocker switch.
Once you have a shortlist, you can focus on vetting each supplier more thoroughly. There may be some things that you can’t find from a simple internet search, but which are worth knowing before you go into business with anyone. If you have any other contacts in your industry you can talk to, they can be a valuable source of information.
Be Prepared for a Long-Term Relationship
In business, long-term relationships count for a lot. If you are able to maintain your business relationships over many years, you can enjoy such benefits as special discounts, priority service, and right of first refusal on new services and products. Any competent business leader will invest time and resources into maintaining their most important relationships.
When you choose a supplier, you should be thinking about their long-term potential. You don’t want to invest now only to have to restart your search in a year. Instead, look for a supplier who has an unimpeachable track record and has proven themselves to be a trustworthy business partner.
Keep the Number of Vendors You Use to a Minimum
Having a backup plan if things go wrong is a good idea – you shouldn’t put all your eggs in one basket. However, some businesses try to achieve this by using multiple suppliers. Unfortunately, this causes more problems than it solves. All it takes is one supplier or vendor to suffer issues and your whole operation can come grinding to a halt. Stick with a small number of reliable suppliers instead.
The suppliers that you work with will be crucial in determining how well your business performs. If your suppliers let you down, you could be forced to severely ramp down your operations at a huge financial cost. Taking the time to pick the right suppliers from the beginning will prevent this from happening.