Working with Suppliers

The choice of the right calibre of supplier for a business is critical decision which a business must take carefully. Suppliers play an important role in the production chain and the efficiency and stability of the supplier must be not be undermined. 

The following factors should be considered in choosing supplier quality of supplier, value for money, reliability, financial security, good customer service, the right partnership approach, health and safety record. 

When a business is in search of a new supplier, the importance of targeting the right type of suppliers leads to the ability to effect due control from the outset and ensure that a supplier meets the business notions of quality standards.

Smaller suppliers tend to offer competitive deals which the business can take advantage of. 

It's important to short list prospective suppliers and asses what each has to offer in terms of the best value for money amongst the other factors mentioned already in this section. In making comparisons between suppliers, the business needs to assess the respective quotations of each supplier. In addition to the price factor, quality and high standard must be considered.

The management of suppliers and the role that they eventually play in the business is dependent on the terms of agreement with the business. These terms are based on the possibility of risks, payment to the supplier and the potential costs. 

Through the application of high standards of quality by the business, the suppliers have to adhere to high standards of expectation and provide the best quality on a consistent basis. 

Suppliers must meet specific needs and enable the business to achieve its target. For instance fast turnaround periods for the business would require the supplier to provide suppliers in a timely and efficient manner to meet the turnaround targets. 

The stronger the relationship between the business and the supplier, the more efficient is the partnership and hence the achievement of better results. 

Efficient technological processes strengthen the relationship between suppliers and businesses. It increases the efficient inventory planning resource planning for the enterprise and the analytical process for the business. The progress and performance of the suppliers need to be assessed regularly. In areas of weakness, there are opportunities to discuss and devise methods of practical improvement.