01/17/20 4:56 pm

Choosing a Supplier for Your Business, Supplier Selection Method, importance of supplier selection, factors to consider when selecting vendors

The current uncertainty in the global economy is a cause for concern for many companies. As a result, retailers and manufacturers are eating tariff costs, pulling back on planned investments and moving their supply chains. “Finance and procurement professionals … are likely to be the first in their organizations to perceive and deal with the impact of a recession, Nikesh Parekh, co-founder, and CEO at Suplari, a financial analytics firm, said in a press release. The company’s recent survey found 77% of procurement and finance managers are anticipating a recession by 2021, and 30% of them feel unprepared should it occur. For those that are preparing, cutting costs and gaining visibility across multiple tiers of suppliers are top priorities.”

Choosing a Supplier for Your Business: The Supplier Selection Method

The importance of supplier selection cannot be underestimated. The stakes are high and moving to manufacture from one location to another can be problematic – a supplier strong engineering staff is a must. Here are some factors to consider when selecting vendors

Goal Alignment – Do the supplier’s goals align with yours? You need to know the supplier’s company culture, mission, goals and values in order to determine if they’re a good fit and align with yours. Matching these elements are the hallmarks of a good partnership. Differences in these elements will only lead to conflict somewhere down the road.

Seasoned Supplier – Is the supplier experienced? Ensure that your potential supplier is experienced in your industry. With experience, comes expertise. An experienced supplier will not only add value but make the partnership run smoother. It is also important they’re experienced when it comes to dealing with product specifications. It is extremely important to make sure the specifications reflect the current product. You also need to be sure that your new manufacture is able to recreate the quality adherence which includes test fixtures and inspection processes. 

Flexibility – Even the best-laid plans can go astray. There are always unexpected surprises and numerous uncertainties that require flexibility on both sides. Is the supplier flexible? Investigate reviews of the supplier to discover how they operate. Keep in mind that flexibility and the willingness to respond to change is crucial to your success.

Products and Services – Likely, you know the products and services your supplier offers. But, are they of high quality? Do some digging to find out past reviews and past work. This is very important because your supplier’s quality will have a direct impact on your success.

Value – What value does your supplier bring to the table? You need to access their value. Does the supplier have an excellent reputation in your industry? Can they perform on how you want your company to be perceived? Keep in mind that strong value comes with a price.

Cost – Is your supplier’s cost a fair one? Is the opportunity, product or service worth the price tag? Compare different suppliers. This way, you’ll know if the price is current market value. These questions need answers. In addition, does the cost match up with your budget? You need to know how much you can afford to spend.

The key factors to focus on when choosing a supplier are:

  • Goal Alignment
  • Seasoned Supplier
  • Flexibility
  • Products and Services
  • Value
  • Cost

The Management Process at Mars International

Mars International offers manufacturing partnerships and the resources to manage global supply chains. Their goal is to bridge procurement, sourcing and supply planning across the supply chain. Their management process is second to none with an experienced engineering team to ensure the quality and testing of products are top-notch. Mars International shares data and manages materials in the supply chain. Plus, they provide intellectual property protection and on-site production monitoring.

The advantages to its clients include minimal risk and minimized overhead. If you crave excellence and simplicity for your product delivery and manufacturing process, contact Mars International. They have extensive knowledge of manufacturing and a solid understanding of the supply chain relationship. Let Mars International take your company to the next level. Give them a call today.

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