Select your Suppliers Carefully

Tips and Traps Regarding Suppliers
Here are some tips:

  1. Don't rely heavily on one supplier.

  2. Research your potential supplier to make sure that they will be able to provide you with the goods that you need.

  3. Monitor their performance because if they don't perform then it is time to look for someone else.

  4. Check your supplies after you have received them so you can resolve any disputes quickly.

  5. If you have an agreement for a fixed price for certain goods then remember that these prices should be able to be increased if external factors occur. If you do this your supplier will appreciate it and look after you.

  6. Your supplier relationship cannot be built over night. The benefits of a good relationship are endless.

When it's Time to Change Suppliers
Here are some hints about when it's time to make changes:

  • Check first to see if other suppliers can meet your requirements

  • If looking, check local suppliers to avoid freight costs etc

  • Evaluate whether the potential new supplier is successful or not because you don't want any problems.

  • Have a look at the products you require and assess whether they do need to come from suppliers or whether some can be made in house.

  • You may be able to negotiate better terms with a change of supplier because your business will now be well and truly running and established. Check to see whether there are any other local suppliers available before you get rid of the old one. Once you have a new supplier maintain a good relationship with them and keep communication lines open.