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Choosing a supplier can be vital to your business as if you cannot get the supplies you need then it can really disrupt your business, cost you money and ultimately affect your reputation. This is why there are many things you need to consider other than just price. It’s not that price shouldn’t be a consideration, but if the price is low and the quality of good or service is poor, then it may not be the best deal. You need a quality supplier who uses supplier management best practices. Continue reading to discover what to look for in a supplier for your startup.
Do They Offer Credit?
Credit can be all important in business as if you even get a 30 day payment option then it can really smooth the operation of your business. Ideally, you then have time to get your orders out, and crucially paid for before you have to pay your supplier. The simple fact that a supplier can offer credit shows they are a company of a particular size and are more likely to be a stable and reliable supplier.
Customer Service
How is the customer service? Do they respond to queries? Is the staff knowledgeable and helpful about the products they offer? How would they respond if there is a problem is another consideration to be taking in? One way of checking out how people have found their service is to look at online reviews and assess if there are any recurring issues or positives. Find a supplier who offers the best customer service experience so that you can kick-start your new business efficiently.
Speed Of Service
One consideration for many businesses is the speed of services that a supplier will be able to offer. There are often times when, for whatever reason, it is important to be able to get supplies quickly, you may have a last minute order from a customer or just have neglected to place an important order. This means that you need a supplier that can offer quick delivery, I find that a good supplier will, for example, give you an urgent oil delivery when required.
Quality Of Product
How often is the cheapest supplier also the highest quality supplier? Not often is the answer and you need to be able to assess what is the best value for money for your business and what quality you need. There will be a minimum quality that will suffice for your company and you need to consider where you are marketing yourself with regards to price and/or quality and choose a supplier according to your own criteria. If you want to ensure that your product quality remains at your required level, consider building and maintaining a good supplier relationship through a vendor management office.
Guarantees & Warranties
Every supplier will have their own set of terms and conditions and will make different promises and guarantees with regards to many things. These things include returns, service guarantees and product warranties. You need to be sure you are getting the flexibility and quality of service that suits your needs. If they have a good returns policy or a flexible attitude to the business relationship then this could be really valuable to a good supplier that really helps you grow in a manner that is less stressful than could be otherwise.
