If you want to make sure you never run out of inventory of high-quality products, then you will want to have a top supplier on your team. To ensure you have a high-quality supplier, you will need to take some necessary steps before and after you put a supplier on your team. Here is what to look for in your search for the ideal supplier.
Pre-Qualification
First, you will want to make sure that your supplier will have high-quality products that your business needs. Make a shortlist of at least five reputable suppliers and initiate contact with them. If possible, make a physical inspection of the supplier’s warehouse. Also, get at least three references from companies that currently do business with the supplier. Finally, do a background check on the supplier to gauge their recent performance.
Make a Test Order
Before committing to a big contract, it’s important to try things out by making a test order. To get started, order around 10 to 100 items to see how quickly your supplier performs. If you have problems with at least 2 percent of the orders, then there is a good chance that this supplier is not a good fit for the long term.
Supply Chain Audit
In order to ensure that your supplier has all the high-quality products that you need, you will want to perform a supply chain audit. Find out which manufacturers the supplier is working with and check their delivery times across every country or region of your business operation. Utilizing a supply chain audit helps mitigate risk during all months of your business operations.
Stay In Contact With the Supplier
It is important that you stay in constant contact with your supplier. For instance, if your supplier is in China, you will want to make sure that your supplier can still deliver during the Chinese New Year Holiday. Try to schedule a conference call at least once a month with your supplier to make sure they are providing high-quality products and delivery times. Also, keep your supplier in the loop with any changes to your business.
You can easily have the right supplier on your side by taking some simple steps. Carefully evaluate the background of your supplier, make a test order, run regular supply audits, and stay in consistent contact. A well-run supply line will ensure that your business runs smoothly, which means you will be more profitable too.
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