Member Article

Selecting the right supplier

With Business LinkChoosing the most appropriate supplier to provide your business with the maximum benefits involves much more than scanning a series of price lists. Carol Groombridge from Business Link looks at the various elements of selecting the right supplier for your business. Your choice of supplier will depend on a wide range of factors such as value for money, quality, reliability and service. Making the right decision when it comes to selecting your supplier can have an impact on your business’ profitability, its reputation and the quality of your products.Establish your needsIt is important to consider your business needs before making your choice of supplier - the most effective suppliers are those who offer services that match, or exceed, the needs of your business. When looking for suppliers, make sure you know what your business needs are and what you want by buying, rather than simply paying for what suppliers want to sell.Do your researchOnce you have defined your needs, draw up a shortlist of potential suppliers to research. Find out whether those suppliers can deliver what you want, when you want it. Other businesses who have worked with those suppliers will also be able to give you some useful advice.Get a quotationAlways ask for quotations before you agree anything with a supplier, this will then help you to compare your list of potential suppliers in terms of what is important to you. Price is not always the deciding factor, while it is important, it shouldn’t be the only reason you choose a supplier. It is equally important to look at reliability and speed when deciding upon a supplier.Make sure they understandYou may think that once you’ve chosen a supplier you simply pay for what your supplier is selling, but don’t be afraid to take the initiative when negotiating contracts and levels of service. Make sure they understand exactly what you expect from them.The number of suppliersBy limiting the number of sources that you buy from it will be more cost effective and easier to manage for your business. You should also consider that it is always worth having an alternative supply source ready to help in difficult times.Supplier reviewIt is a good idea to review suppliers’ performance at regular intervals, as it will enable you to identify whether you are using the right supplier for your business. Ask yourself whether the supplier still meets your business needs - are they reliable, on time and cost effective? Regular reviews also help keep suppliers from becoming complacent.For Business Link services in your local area, please call: 0845 600 9 006. For further information from business link, visit: www.businesslink.gov.uk. Business Link services in the North East are supported by the European Regional Development Fund, through the Government Office for the North East, and One North East.

This was posted in Bdaily's Members' News section by Ruth Mitchell .