How Manufacturing Gurus Choose the Right Suppliers
February 9, 2021
The supply chain is one of the most important business processes to get right, and choosing the right supplier is a critical decision for a business hoping to maintain growth. An unreliable supplier that delivers sub-par products can damage a brand much more than you might think. That means knowing exactly how to ensure that you only ever use the suppliers to reinforce positive branding. From your products and components to the raw materials you need in your manufacturing center, some clearly identifiable steps will ensure that you get the suppliers that will not hamstring your brand gains.
Know Your Expectations
Your first step is to create a list of what you need from your suppliers. This will mean looking at their basic provisions and ensuring that they will be able to provide what you need from them, including:
Lead time: If you want a faster time to market, you need timely deliveries in the relevant time scale.
Order quantity: As your brand scales, you need to know that your suppliers can keep up with your minimum and maximum orders.
Quality Assurance: Check that suppliers have protocols in place to deliver the product quality that you need.
Payments: You need to know that your suppliers will accept payments in your preferred way.
Returns: Do they have a system that will allow you or your customers to return faulty products?
Communications: Overseas suppliers may have language barriers to cope with, but you also need to test your communications response times.
If you can be flexible on any of these factors, then it will be easier to identify a larger list of potential suppliers.
Create a Shortlist
Once you have fine-tuned your options, it’s time to do some deep dives into their business model. Some key areas to evaluate include:
Type of Business: Manufacturers don’t always need products delivered to their facilities. In those instances, a dropshipping supplier could be the best option. Consider your needs and choose a supplier that offers either wholesale shopping or private labeling.
Reputation: Check the reviews of your potential suppliers. If you’re unsure of their reputability, it’s often worth contacting brands that have used that support in the past.
Safety and Security: From data protection to fraud protection and insurance, you are going to need to choose a supplier that will protect your business as much as you do.
Research is a critical stage when it comes to choosing the right supplier. Take your time to get it right, and your business will be much more secure.
Get Quotes
Your research should result in you now having a shortlist of the best potential companies to choose as your supplier. Your next step should be to put out a call for bids. This will often mean that you will have to fill out an RFP or RFQ form. In those cases, make sure that you are as detailed as possible, including quality standards and quantities. Of course, the quotes that you get will depend on the type of suppliers you are looking for and the type of products you manufacture. While some manufacturers are looking for raw materials from a reputable polymer company, others will need finished components or PCBs to be utilized in the manufacturing process. Be as clear in your demands as possible to avoid confusion.
Assessing Bids
Once you have received all of your bids, it’s time to take a closer look at them. Ideally, you want to have as little compromise as possible. That means you need to evaluate budgets, quality standards, pricing, and delivery times. Contact the suppliers that match your criteria and request to see both a product sample and any compliance documents. By this stage, you should have a clear idea of who your supplier will be, which means it’s time to look at contracts. Always use a lawyer to either write or review any legal documentation. It’s also a good idea to start with a short-term contract to ensure business compatibility without any long-term risks.
Ongoing Monitoring
In an ideal world, you would now be able to move on, knowing that your supplier will consistently deliver high-quality products promptly. Of course, that’s not always the case in the real world. You will need to monitor your chosen suppliers to ensure that product quality is at the expected level and that you don’t constantly have to cope with late deliveries. Any issues, such as incomplete or late deliveries, may be minor bumps in the road, but if they keep happening, then you may have grounds to break the contract and move onto a new supplier.
When your choice of supplier can make all the difference to your company’s future, choosing the right ones is a priority. Make sure that you have a clear idea of your needs and do your research. The more time you spend evaluating your options, the more likely you will create a partnership that only grows stronger as you collaborate.
