Finding the right manufacturer is one of the most important tasks for a supply chain manager. In addition to dealing with the day-to-day operations of your business, you must also identify the best deal for production. If you are a supply chain manager, you are probably in need of a manufacturer. Whether it be for a single product like ultracapacitors or a full inventory, it is important that you take the time to find the best one for your business. For a comprehensive guide on how to find a manufacturer, keep reading below.
Step 1: List Your Requirements
One of the most important things to do during your search for a manufacturer is to list your requirements. If you hope to maintain or improve your current business operations, you will need to consider what features are absolutely necessary. This way, you can eliminate manufacturers that do not cater to your industry, distribution or production needs. Once you have this in mind, you will find sorting through your options much easier.
Step 2: Determine A Location
As a supply chain manager, you may want to consider the location of your manufacturer as well. If you have problems with your current manufacturer, consider how location may play into your troubles. For importing and exporting, your business may require a special business license. There are many pros and cons to overseas versus domestic suppliers. Choose your ideal location so that you can continue to narrow down your considerations.
Step 3: Make A Short List
Once you have these key requirements listed, it is time to create a shortlist of potential suppliers. If you want to find a manufacturer, this is an important step. Firstly, this helps to eliminate any manufacturers who do not meet your needs. Having this on paper can be very helpful for reference throughout your journey. Additionally, a short list will provide you with the opportunity to compare and discuss your operation needs with them.
Step 4: Request A Quote
The next step to follow when you have a short list in place is to request a quote from each of them. This is your opportunity to ask important questions regarding order quantity, turnaround time and payment terms. You may even want to work out a sample production order so that you can examine the quality of their work and speed of distribution.
Step 5: Negotiate Terms
Finally, the last thing that you will need to do is negotiate your terms. As a supply chain manager, you probably already have a reference point for the production of your business products. Use the quotes attained from step 4 to find the best deal for your business. You can negotiate paying with credit or debit. Or, you can negotiate how long you have to pay for the goods. Once you feel comfortable with your choice, you can sign on your new manufacturer and resume business operations.
It can be difficult to find a manufacturer for your business while also trying to maintain normal day-to-day operations. However, by following these steps below, you can likely find exactly what you are looking for with minimal interruption to your business. By listing your requirements and requesting quotes and samples from different manufacturers, you can find a manufacturer with the best deal for your business.
Image from http://mentorchamber.org/news/manufacturing-blog/