How to choose the successful suppliers? Suppliers are an essential part of any company. They provide the company with the services or products necessary to carry out the commercial activity. In addition, they can be allies when it comes to improving costs, product design and marketing strategy of your company. How to fail in your choice, right?
What is a provider?
A supplier supplies the products or services to the company. It is an essential part of any company’s operations, since it is part of the business growth and expansion strategy. In addition, if the chosen suppliers are the right ones and you establish a good relationship: you will be able to know the strategy of your competitors and identify the areas of opportunity. A supplier is an ally. And like any ally, you have to earn it and know how to maintain it.
The types of providers
There are many types of providers, and the most important thing is that you choose the one that best suits the needs of your company. There are different types of suppliers: manufacturers, wholesalers or distributors and importers.
The differences are the following:
Manufacturer: it has the infrastructure to manufacture the products that it sells. The prices of the manufacturer’s catalog are, in general, lower. Although this price may be increased by transport costs, it is necessary to make sure in advance where the manufacturer is located.
Wholesaler: They buy in large quantities from different manufacturers and resell it to retailers. The price is higher than the manufacturer, but they already have an optimized shipping system, so the price increase of the item is compensated by the lower transport price.
Importers: Their modus operandi is similar to wholesalers, but they are located abroad, so their prices will depend on the importing country. An advice? If you are going to opt for a foreign importer or wholesaler, it is best that you travel directly to the country to acquire the merchandise.
In any of the three types it is possible to obtain more or less volume of merchandise. In addition, there are also small-size and independent suppliers that provide creations and unique pieces on a small scale.
t they are located abroad, so their prices will depend on the importing country. An advice? If you are going to opt for a foreign importer or wholesaler, it is best that you travel directly to the country to acquire the merchandise.
In any of the three types it is possible to obtain more or less volume of merchandise. In addition, there are also small-size and independent suppliers that provide creations and unique pieces on a small scale.
What should I take into account when choosing a provider?
As we have already emphasized, the figure of the supplier is very important in any company. There are keys to consider before embarking on the adventure of choosing a provider.
Price
Does your price fit my budget? Can I negotiate a discount based on volume? Do you give me payment facilities? These are some of the essential questions.
Reliability
A reliable supplier delivers the right amount of items, on time promised and in good condition. And if by any chance the delivery went wrong, does the provider have a backup system to correct the error? Do not leave any loose ends. In this sense, the stability of the company is also important, and if a supplier has a long journey, and the opinions of other companies are good, it is a green light to choose your provider.
Location and logistics
The supplier may be good, its price reasonable: but it is far from your company. In this case, what will be the cost of transportation? In addition, it is necessary to take into account the logistics system of the company, as well as transport policies. A good provider offers adjusted prices according to the load.
After sales
The post-sale is the great forgotten. And the process does not end once the agreement with the provider is closed. Guarantees, technical service, customer service … are important services. Also, how is your return policy? Do you offer return facilities in case of defective merchandise?
In short, the choice of a good supplier must be an optimized system, always focused on the improvement of the product or service. Before choosing a supplier, do not choose only the one that has the price or product you need, we advise you to make a study of the existing suppliers in the market, as well as to negotiate the price. And as always: do not leave anything to chance.