No matter your business, having a good supplier plays a crucial role in your company’s long term success. If you manage to get the right suppliers from the beginning, you’ll undoubtedly enjoy improved production processes, greater cost efficiencies and higher-quality products.
But getting a good supplier that you can genuinely build a mutually beneficial relationship with is not an easy feat. They don’t come by chance, and if you get it wrong, the results can be costly and disruptive. That’s why it’s often advisable to go beyond the ethical requirements alone and conduct an in-depth evaluation of the qualities highlighted below.
1. Accountability
Accountability is a critical requirement in every profession. A supplier who can’t demonstrate any sense of responsibility for mistakes committed is bad for your business. Such suppliers will often exhibit red flags like blame-shifting or bringing up excuses whenever serious issues arise.
As an accountable business person, you’ll find it challenging to deal with such suppliers when your goods are on the line. They’ll stop at no cost to deny their mistakes and hinder you from meeting deadlines and product requirements. Pay close attention to this often overlooked quality and filter out those who exhibit similar traits.
2. Consistency
Many benefits come with a consistent supply chain. If you’re dealing with any supplier, you’re probably counting on their ability to deliver services that grant you these benefits without any compromise.
While there could be factors that affect delivery consistency, it’s crucial to have a supplier that can fulfil the obligation they make to you. This will make it easier to enter into a long term contract knowing you can count on them.
To evaluate their consistency, enquire about their delivery approaches and how long they’ve been in the supply business. This will give you an idea and probably help you develop some confidence in their stability.
3. Capacity
You don’t want to engage a supplier who doesn’t have enough capacity to handle your company’s requirements. More so, you need suppliers who can manufacture and distribute the product you want without any third party involvement. That’s why you should first evaluate the suppliers’ production capabilities before assessing other qualities.
To understand this better, you need to evaluate how quickly the supplier will respond to your needs. Follow up with an analysis of the suppliers resources, including their staff and available materials. This will give you a hint on whether they can handle your orders even during market fluctuations.
4. Communication
Communication is an important quality that separates reliable suppliers from unreliable ones. Not only do you need a supplier who you can contact openly, but also one who is responsive to your queries. Consider the supplier’s communication and the availability of their support staff whenever there’s an emergency.
Still, on communication, it’s also crucial to find out how your supply communicates in times of crisis. That is, how quickly will they get in touch in case of any delays or disruption in the supply chain? Communication is also an important aspect that improves supplier relationships management. So, consider it essential when assessing the suitability of your supplier.
5. Cost and Value
Cost and value are two critical aspects that fluctuate depending on your supplier of choice. In most cases, you’ll find suppliers who don’t match the value of the costs they charge. If you choose a supplier with a higher cost, ensure they are capable of delivering the following.
- Improved product quality
- Reduced overall production costs
However, this doesn’t mean going for a low-cost supplier is the real deal. Low-cost suppliers are often associated with poor quality products, which will result in more expenditures later. So, evaluate the total value of the supplier’s products and equate them to the price.
6. Location
Today’s fast-paced world ensures that you can source for a Wholesale goods supplier from just about anywhere. This means you don’t have to be tied to the local suppliers forever. However, going global with your supplier’s only works if your business strategy won’t be affected.
For instance, will it cause a delay given the products will come from abroad? Plus, can your international supplier deliver on your budget? Evaluate all these qualities before deciding to outsource your supplies.
7. Knowledge of the Market
Dealing with a supplier who understands your market is hugely valuable. You don’t want a supplier who doesn’t understand the exact product specifications you need. Or better yet, you don’t need a supplier who wants to experiment with their products on you.
A supplier that deals in the product they’re distributing will be a perfect fit for your business. The reason being—they are likely to be familiar with common quality issues related to the product. As a result, they can identify and fix problems whenever they arise.
8. Regulatory Compliance
To avoid legal issues, you need to ensure your supplier complies with laws governing the target market. Ascertain if they are accredited with relevant regulatory bodies to produce the specific product. Also, check whether they have a valid business license. This will help you avoid working with a supplier who is not legalized to operate.
Clear evidence of accreditations and compliance with the available regulations is crucial for every supplier. If your supplier can’t prove or demonstrate their legitimacy, they are only leading you into more trouble.
9. Culture
Your company has a higher chance to succeed if you engage in business relationships based on culture. This concept also helps when looking for a supplier that can deliver up to your standards. For instance, if your company’s most significant value is quality, you need a supplier that’ll match the desired value.
Any mismatch in shared values may prove detrimental in the long run. Each party will be focused on enforcing their value and compromising on the other party’s needs. To be safe, look out for suppliers that can recognize and identify with your company values.
Final Thought
The utmost goal for any business is to have a mutually benefiting relationship with their supplier. That’s why you should only work with suppliers that exhibit the qualities mentioned above.