What To Look For In A New Supplier

What To Look For In A New Supplier 

KEY POINTS

If you run a business, it’s very likely that you’ll need to find a new supplier for something at some point. It might be a product you then sell on to your customers, parts or materials so you can make your own products, or office supplies so you can do the admin side of your work.

Whatever it is, choosing the right supplier is crucial for the success and growth of your company, and that’s true no matter what industry you’re in or what you want that supplier to supply. 

Although the end result should be simple, there are a lot of factors to consider when you’re looking for a new supplier, so if you want to make sure you get it right, keep reading to find out more. 

Reliability 

When evaluating potential suppliers, reliability has to be something you find out about because it’s just so important. You need to make it a priority, in fact, and when you’re searching, look for suppliers with a proven track record of delivering quality products or services consistently and, of course, on time. 

To make sure that’s going to happen (barring the occasional mistake or when something happens that can’t be helped, that is), check their references and ask about their processes for getting goods and services delivered on time. In that way, you’ll get a better idea of what they can do for you. 

Competitive Pricing 

Quality is non-negotiable when it comes to your new supplier, but you do also need to ensure that they’ve got competitive pricing as well. You need to make a profit, and your customers have to be happy paying the prices you set, which means you need to pay a fair price to begin with – as you can see, competitive pricing makes all the difference. 

It’s best to compare quotes from a few different suppliers to ensure you’re getting the best value for your money. See if they’ll do bulk buy offers for when you want to place a larger order and try Omnichroma Flow bulk or something similar – that can save a lot of money.

However, it’s wise to be cautious about really low prices because the quality of whatever you’re buying might not be all that good, or there might be hidden costs that cause problems later on. 

What to Look For in a New Supplier: Contract Terms 

You’ll probably be asked to sign a contract when you find a new supplier, and before you do, make sure you carefully review it and see if it’s a fair one. It can also be a good idea to try to negotiate better terms if you don’t like the contract as it initially stands, and if the supplier doesn’t change anything, it could be best to walk away – there will be other suppliers you can work with. 

Pay attention to clauses that talk about pricing, payment terms, delivery schedules, quality standards, intellectual property rights, and more, and check things over with a lawyer if you want to make sure all is well before signing. In that way, you can keep your business safe.