Every buyer dreams of having a reliable quality conscious supplier at his back to strengthen his supply chain channels. Price is also a decisive factor in making a final selection of a supplier. Creating an equilibrium between price and quality is an uphill task. A rational approach can help to resolve the issue in a manner to reap the benefits of a right decision. A decision based on price consideration alone can backfire. There is no substitute for quality, and quality has its own price. The buyer leaves room for the supplier to play a trick with the quality if he is not paying the due price for the quality of the products or services. The only consideration behind doing business is profit. Hence no supplier can assure the quality by compromising on his profits. Focusing on the following points when selecting a new supplier can prove the pillars of your future sourcing strategy.
Write down a checklist of your requirements and ad expectations from your new source of supply. Sort out your priorities numbering the checklist accordingly. Follow this checklist without any compromise.
Knowing the available inventory or shipment capacity of a supplier is more relevant in the case of industrial supplies. The prudent buyers of consumer goods plan ahead of time and prefer tailor-made, order specific suppliers. Our buyers at MagniPak always prefer order-specific production according to their spec sheet, colors, sizes, and packaging preferences. That surely needs planning with reasonable time cushion for procurement and manufacturing to meet the lead time.
Time is money. Poor customer service and delayed communication are the sheer wastage of time. Rapid information flow is a need of time. Carefully check the supplier’s repute for customer service. Also, evaluate it by communicating on and off basis. Time zone differences and language barriers also play a vital role in communication blockade. The quality suppliers take care of their repute by offering round the clock presence by using virtual tools.
The certification is a way to know that product is meeting the standardized requirements. It relates to product, delivery time, and certain other factors. A buyer must check the certification of the supplier by his required quality standards. Ask for the ISO, QS, and other certificates to make sure that your supplier can meet the desired quality standards.
Many countries have their own peculiar climatic and weather obstacles hurting schedules of production and shipments. Southeast Asian countries, for that matter, have their specific monsoon spells resulting even into widespread floods. It not only delays production but keeps the supply routes closed for weeks. Similarly, hurricanes, tornadoes, acute winter, and other clematises can affect the whole process of the supply chain. Keeping in view all these points can payback with a smoother supply line.
Lead Time Adherence
Adhering to lead time by the shipper is notable. The responsible supplier makes it trait rather than a requirement. The pattern followed by any supplier can now be checked by using software tools and data available free on the net and against subscriptions from specific data services firms.
The location and distance of a manufacturing facility play a vital role in getting timely supplies. A far-flung manufacturer with a lesser price can cost you more if supplies take a longer time to reach. Selecting a nearby supplier can save you time even if the price is a bit on the higher side. Improving turnover can lead to profitability with speedy supplies. It is especially relevant to seasonal sales. For long term volume supplies, the buyer has time to plan and place orders with the flexibility of lead time.
Every buyer has a preference for making payments. You can find the best match of a supplier, agree to meet your payment terms. It surely has an impact on the price. You can negotiate a higher price in advance payment or work against a Sight LC. Deferred payments will lead to a higher price and difficulty in finding a supplier. You as a buyer than need to make a win-win situation to get a reliable quality supplier.
Checking the product spec and details before making a final supplier selection is of utmost importance. Make sure that the supplier has technical and financial resources to offer the desired product specs, meeting quality standards. Asking for a detailed spec sheet, CAD drawing, and physical samples are the ways to make the right selection. We at MagniPak offer tailor-made samples as per customer specs and sizes if a new customer desires so. Our regular customers are comfortable in placing repeat orders based on the spec sheet alone.
Most of the suppliers accept orders at every cost. First, they accept the order and then try to make adjustments within existing manufacturing schedules by making compromises on quality. It creates embarrassment, leading to asking for an extension in LC, shipment, and expiry dates. Such practices badly shatter the buyer’s trust. Check the capacity of a supplier according to the volume and speed of supplies you need. The large scale supplier alone can meet the regular volume demands. The Volume distribution among the suppliers can be another solution to receive uninterrupted supplies.
Reputation is the result of experience, the time spent in business and winning the trust of buyers with quality and performance. The word of mouth still is the most reliable source of information about trusted suppliers. With the rise of E-commerce, many B2B portals now provide free and fee-based data about sound suppliers. A credit report through a credit agency or a bank can help to know the trustworthiness of a supplier.
Selecting a coastal and near-coastal shipment location has a sure edge in making timely shipments. In many third world countries, the law and order situation and infrastructure facilities are hindrances in making shipments from remote dry ports. The shipments then take a long time and are at risk of theft and other damages en-route to seaports.
Make sure that the supplier is in a comfortable position to make timely shipments. Sometimes suppliers offer many competitive prices but unable to meet the shipment schedules because of Geopolitical issues or peace and climatic disturbances. Selecting a reliable supplier at a bit higher price can keep you in more peace of mind.
Reference from a satisfied customer is a real success of a business. Ask from a tested customer, and he will surely recommend a trusted supplier. The satisfied customers pass on the word about their experience creating free goodwill for you. It is a sort of identity you can always be proud of. You can ask a satisfied customer to provide a reference to any of your new customers, and they will happily accommodate you. Customers also grant their permission for using their recommendations as testimonials for placing in emails and web sites. That is a boost to your marketing campaigns.