Choosing the right suppliers is essential for enhance results of the business. This is quite a challenge for companies, especially when the type of purchase is direct, that is, it is related to the product or service sold.
Therefore, before making any decision, the buyer needs to consider some criteria at the time of negotiation, to be assertive in choice of new suppliers.
The price, despite being a very relevant factor in purchasing management, is just one of the requirements to be considered when selecting suppliers.
To avoid problems, it is necessary to prioritize partners who are aligned with the objectives of the company and committed to quality and deadline.
In this context, companies that want to maintain a good reputation and increase their competitive advantage must pay attention to suppliers' commitment to environmental, social and governance issues (ESG), as they are demanding initiatives and actions linked to these aspects.
In this article, check out tips to avoid making mistakes when choosing your suppliers and boost your results.
7 tips to avoid making mistakes when choosing suppliers
1. Aligned goals
Choosing suppliers with objectives aligned with those of your company is the first step towards achievements trusted relationships e lasting.
In this sense, the collaboration between buyer and supplier, with agile and transparent communication, is beneficial for strengthening both.
For example, if your company values sustainability process, your reputation may be affected if you buy from a supplier whose business does not contribute to mitigating the greenhouse effect.
2. Quality of products or services
There is no point in negotiating a good price with the supplier if the quality of the product or service they offer is compromised.
It is difficult to have 100% guarantee that a product or service is of excellent quality, therefore, if possible, carry out tests and evaluations calmly and count on the help of specialized professionals.
Therefore, it is necessary prioritize product quality so as not to cause significant losses to the company, compromise profits and even stop its production line and the continuity of the business itself.
3. Supplier reputation
One of the most common mistakes made when selecting a supplier is not doing in-depth research. This can put your company’s reputation at risk.
Try to better understand the trajectory of your future partner. Research whether the company complies with legal and tax obligations and technical regulations, among other important assessments.
Before entering into a partnership, listen to companies that have already been served by the supplier. The length of time the supplier has been operating in the market should also be considered.
4. Negotiate to get savings
Negotiating with suppliers is a significant step in conquer more savings (savings on purchases) and, consequently, increase profits.
For this reason, research the prices charged on the market, make comparisons and show the supplier how willing your company is to seek the best deals.
Before making any decisions, review your budget, set goals and identify opportunities to reduce acquisition costs.
5. Specify what you need
It is common for a request for quotation to reach a supplier without containing a complete and detailed description of the customer's need, which further prolongs the purchasing process.
To make negotiations with suppliers quick and easy, describe the details of the product you wish to purchase, the deadlines you require and the payment methods you use.
With precise and defined information, it is possible to know whether the supplier has the capacity to meet your needs and, therefore, the commercial partnership will meet more realistic expectations.
6. Count on more than one supplier
Unforeseen events, failures, mistakes and errors can happen in any business. Therefore, have a plan B to supply the products and services your company needs.
Even if your current supplier guarantees service and has no history of problems, it is important to have access to other partners who can serve your company in a similar way.
Additionally, having more suppliers can help your company in a sudden increase in demand, for example, without leaving customers waiting for too long.
7. Value communication between companies
Communication is a two-way street. To achieve better results, both buyer and supplier need to be willing to communicate. communicate clearly, objective and simple.
Thus, centralize information in one place, easily accessible to everyone involved, it can greatly facilitate the routine of those who buy and those who sell.
Today, there are different platforms aimed at hiring, evaluating and approving suppliers, such as the SRM solution (Supplier relationship management) Of the Electronic Market. It can certainly fit your business needs.
In this content, you saw tips for optimizing the choice of suppliers in your company and how this can help you achieve better results in your business.
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