Supplier Selection: 3 Steps to the Best Decision

0

As the years go by, more and more money is pumped into the industry and so company projects get bigger and bigger. Ensuring a big project is done on time, to a good standard and at a reasonable price is crucial if your business is to be successful. An important part of this is choosing the right supplier to work alongside your business on your project. There can be plenty of different considerations to think of when choosing your supplier. In this article, we will be looking at the best tactics for supplier selection.

Define your Priorities

The first job you’ve got for a supplier selection is to make sure you know what it is you actually want. From big capital projects to small supply chains, each requires their own unique needs and proprieties. For instance, a priority of your project could be price due to a tight budget. Therefore you would be looking for the cheapest options available. Perhaps the project has a tight deadline. Therefore you will need to look for the suppliers which supply in the quickest time possible. Make sure these priorities and objectives are well defined and thought through before you go looking for a supplier. Otherwise you may end up with a poor quality project, or delays farther down the line if you need to change the supplier.

SEE ALSO: 5 Tips to Choose a Material Handling Supplier

Supplier Selection Checklist

There are many different attributes which define a good supplier. The importance and amount of each largely stem from your priorities. However, there are several universal qualities all kinds of good suppliers possess.

1. Value for Money

Remember, value for money does not merely mean low cost. Value for money is the combination of possibly many different parameters, combined with a low cost. Defining whether or not a supplier is value for money largely depends on your own interpretation. It also requires some research. Finding out what the average cost for your need is and comparing this against different quotes. Despite the workload which comes with finding out whether or not something is value for money, it is worth it to stay competitive as a business.

2. Supplier Quality

The quality and performance of goods brought in by a supplier need to be good enough to fit your need. Additionally, a consistent quality needs to be maintained to ensure reliable performance to meet your standards.

3. Speed

Another aspect of a good supplier is the speed of their service, as well as communication and interaction with you as a client. Big projects are unpredictable, and so regular communication and trading with your supplier is likely to be ongoing through the project. A supplier which responds to your needs quickly will stop your project from being subject to lengthy delays.

4. Reliability

Reliability is a key attribute of a good supplier. It is crucial that you can trust your supplier to deliver on time, on schedule and to the desired quality. An unreliable supplier can lead to project delays, poor quality progress and poor value for money.

5. Reputation and Risk

Big capital projects these days can come with a lot of risk attached to them. If they fail, are significantly delayed or do not perform as expected, huge amounts of money can end up being wasted. It is therefore crucial that you have a supplier that has a good, reliable reputation which you can trust to help deliver the project. Less reputable firms may offer you lower prices or enticing bonuses, but with the level of risk associated with these projects, It is best to rely on the big or previously trusted names.

After choosing you Supplier

Hopefully you end up choosing a good supplier for your project, one which can deliver to your needs and to your standards whilst having a good selection of positive attributes. However confident you are in your choice, make sure you don’t regret your supplier selection. To do this, monitor the supplier throughout the whole project. Even the suppliers with biggest reputation can slip up sometimes. Ensure that your company stays in direct contact with the supplier throughout the project and undertake regular performance reviews to ensure they meet your standards.

If you like the article please share.

Leave A Reply