Locating the right supplier and negotiating contracts for products is critical if you’re going to deliver products and services that are on time, at the right price, and live up to your high standards of quality.
It is important to remember that choosing your supplier means more than simply providing you with the resources you need for your business. They can also deliver you vital information, keep you up to date with competitors’ progress, and give you insights on new opportunities. Basically, strike up a good relationship with a supplier, and you could benefit richly from a longstanding and fruitful business relationship.
Unsurprisingly, the process of locating your supplier requires thinking of the strategic variety. Before you start your negotiations, you should already have a strong idea of what your business is hoping to achieve and how you can do it. Once complete, choosing your supplier and the goods they work with should become a lot clearer.
Key Factors to Remember When Choosing a Supplier
For most new businesses, an important consideration is the price. Managing your finances will always be at the forefront of your mind and dictates many of the business decisions you make, so inexpensive suppliers will always be attractive.
However, cheap doesn’t always mean the best value for money, so it’s important not to dismiss reliability and speed in favour of price. Delivering what you want at the right time will always be important, therefore choosing a supplier with a solid reputation and history of experience will always be the favoured option, so do your research.
Identifying the Right Supplier
There are a variety of ways to find your supplier. You can ask contacts for recommendations, who will probably provide you with an honest summary of their experiences with a particular supplier. For a supplier based locally, directories such as Yellow Pages can be an important source of information. Business advisors, such as Chambers of Commerce, will also provide you with expert insight on what supplier could be best for you.
Location is also an important consideration when you’re looking for your suppliers. The further away the supplier is, the longer the waiting time and higher the costs may prove to be. For quick and efficient deliveries, a local supplier may be most logical – but as always do your research, as large orders may bring different benefits, such as free shipping, no matter what the distance may be.
The Relationship with a Supplier
Everyone makes mistakes, and even the most experienced and reliable supplier can occasionally slip up. Frequent reviews of your suppliers’ performance can help you immediately get on top of any areas that require improvement. Also check whether your supplier is giving you the best price, quality, and delivery options for your business. Doing this will also stand you in good stead at contract renewal time.
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Reference to any organisation, business and event on this page does not constitute an endorsement or recommendation from the British Business Bank or the UK Government. Whilst we make reasonable efforts to keep the information on this page up to date, we do not guarantee or warrant (implied or otherwise) that it is current, accurate or complete. The information is intended for general information purposes only and does not take into account your personal situation, nor does it constitute legal, financial, tax or other professional advice. You should always consider whether the information is applicable to your particular circumstances and, where appropriate, seek professional or specialist advice or support.
