Finding a reliable supplier can sometimes feel like playing a round of “The Dating Game.” In fact, asking the right questions and placing the right kind of consideration and focus on the answers provided could mean the difference between your company’s success or potential failure.
It’s not a choice to make lightly, especially when you understand how a reliable supplier will be absolutely integral to growing your business and keeping your customers happy.
This is especially important in times when supply chains have been often interrupted due to the COVID pandemic. For example, recent figures show that while retailers had 43 days of inventory in February 2020, current levels are right at 33 days.
With that in mind, let’s look at some of the most important qualities you should look for when forming a long-term business relationship with a reliable supplier.
1. Accountability for Delivery and Quality Issues
Anyone who has dealt with a supply chain understands that accountability goes a long way in establishing a working relationship.
Deflecting responsibility or failing to work with third-party quality control inspectors are clear signals that a particular supplier will not own up to any product defects that occurred during the manufacturing process.
2. Production Capabilities
While a visit to the production facility might not be an option for you when determining the best supplier to work with, it’s an important step — even if it has to be done by a third party.
According to quality control inspection provider AQF, an audit of a factory’s quality management system should include the following questions (at minimum):
- What raw materials will be used and what will the finished product inventory be?
- What are the steps are taken for incoming quality control, in-process quality control, and pre-shipment quality control?
- Does the supplier have R&D capabilities? (This will be important if you plan to develop new products.)
- What procedures are followed for machine and equipment maintenance and calibration?
- What certifications or licensing requirements does the supplier have?
3. Onshore vs. Offshore
Working with an onshore supplier provides many benefits to your supply chain, including increased expertise of your target market, more reliable product quality assurance procedures, and greater ease of communication between you and the supplier.
In cases where the supplier ships malfunctioning parts that need to be either returned or replaced, an onshore company is a better option to ensure customer satisfaction and the quickest path to it.
Keep in mind that although offshore suppliers might offer lower costs to manufacture and ship the product, it is quality and dependability that will eventually distinguish your company from those who fail to focus on either.
Considering the potential of extra delivery time and cost from choosing an offshore supplier, added to the necessity of paying higher tariffs, onshore suppliers are generally a better choice.
4. Knowing Your Target Market
As we mentioned above, one of the key benefits to finding a reliable onshore supplier versus an offshore one is the greater chance that the supplier will know your target market.
Some questions to ask to ensure this include discovering where and what a potential supplier exports, and whether that supplier is familiar with the legal regulations that the target market will be facing.
Ultimately, the relationship you form with your supplier will be one of the most important relational choices you make to ensure the success of your business.
Taking the time to ask the right questions and consider all angles will always work in your favor even if it takes a little longer to find the right match.
Beware of Supplier Scams
There are a lot of scammers nowadays and being ignorant of their ways can lead your business to failure. Thus, aside from finding the most reliable suppliers out there, you should also be aware of how supplier scams operate.
No business wants to end up being victimized by these people, so doing your research and being vigilant can help you avoid these in the long run.
Most especially that during this pandemic, we don’t get to meet our suppliers personally, it is more likely that these kinds of people would have gotten our trust right off the bat.
Scam suppliers would usually speak of enticing statements that will lead you to give them what they want like personal information, address, bank account details, or even sending them money. There are others that will take some time to get your trust.
They will first befriend you, via chat, messages, and other social media platforms. Some can even get your details online then start to send you private messages.
To avoid all of these, know their origins, do research, ask if they have a physical office. This is helpful because you can go there directly once there would be an issue with the product they are offering.
Conclusion
With the above-mentioned tips, you should be able to get a reliable and trusted supplier that will provide good products, services and will establish a good working relationship that will benefit both parties.
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