When it comes time to source a supplier for your business, there are many factors to consider. Unfortunately, the wrong decision can be costly in terms of money and time. This blog post will discuss four things to consider when sourcing a supplier. By keeping these things in mind, you can make a more informed decision and avoid headaches down the road!
Supply Capacity
Can they handle your projected demand? Do they have the necessary resources? How long will it take them to fulfill your order? These are important questions to ask when considering a supplier. You don’t want to be in a situation where you’re unexpectedly out of stock because your supplier couldn’t keep up with demand. Conversely, you also don’t want to be paying for extra inventory that’s just taking up space in your warehouse. Make sure you have a good understanding of their capacity before making any commitments.
Location
Sourcing a supplier that’s close to you can save on transportation costs, which will be passed down to you. It can also lead to quicker turnaround times since the supplier won’t have to ship the products as far.
However, don’t rule out suppliers that are farther away. They may have lower overhead costs, which they can pass on to you in the form of lower prices. They may also have a larger selection of products to choose from. It’s important to weigh all your options before making a decision. Consider what’s most important to you and your business – cost, convenience, or selection – and choose accordingly.
Price
It goes without saying that you want to get the best price for your product. But, it’s important to remember that the lowest price isn’t always the best deal. When considering the price, be sure to take into account the quality of the product, as well as the supplier’s reputation. It’s also important to consider whether or not the supplier is likely to increase prices in the future.
While considering the price, you should not overlook minimum ordering quantities (MOQs). MOQs can greatly impact your bottom line, so be sure to consider them when negotiating prices with a supplier. Getting a product for a good price is one thing, but MOQs will affect your cash flow and inventory management.
Supplier Values
When you’re looking for a supplier, it’s important to find one that shares your values. This is especially important for businesses that are conscious of their impact on the environment or have ethical standards to adhere to.
There are many ways to vet a potential supplier’s values. One way is to ask them about their practices or for official disclosures like tcfd. Another certification to ask for would be ISO14001. You should also consider the supplier’s country of origin. Some countries have stricter environmental regulations than others, so sourcing from these countries can help to ensure that your supplier is adhering to best practices.
In conclusion, when sourcing a supplier, it’s important to consider a combination of factors. With careful planning and quality sourcing, you can ensure that your business has the products it needs to succeed!