10 key elements when selecting a supplier

Select a supplier
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For a company it is important to choose the customers with whom it will work, but also vital to know how to choose suppliers who have guarantee the supply of products and services. Is it wrong to compromise one’s ability to manufacture and sale of the company? To help you make the best decision about choosing a provider, We recommend evaluating the following elements.

  1. Catalog

Clearly the most significant when it comes to selecting a supplier is the products or services you really need. It is pointless to willingly observe other properties that we will see, if this does not comply.

  1. Location

The actual physical location that has the provider may be relevant, especially if your company who have to travel to your location to pick up the material. A provider who is close, you can buy it in smaller amounts and more frequently.

  1. Quality – Price

The provider you choose must offer consistent quality of your product or service affordable. It is not always find the cheaper, but a good combination of these two elements. Think, how cheap can eventually get out expensive if the quality of what you buy is not adequate. In evaluating the price you have to take into account the additional costs that may be included in it, as those for the transport or packing as well as the possibility of discounts if you buy large quantities (volume discount purchase), or if soon pay (cash discount).

  1. Payment Terms

At this point it is time to assess the payment to the supplier. What type of payment does the supplier use, for example, a transfer or check. Also keep in mind payment deadlines, which will interest search will be preferable the most without charge, though, respecting, as far as possible, sixty calendar days deadline set by the legislation in force against delinquency.

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  1. Supply

The supplier must be able to deliver the material depending on what your needs are. It may be essential to not require minimum orders or to ensure a continuous supply throughout the year. Also, it is important to assess the speed of supply, i.e. the time between when an order is placed until the supplier delivery.

  1. Turnover

Sales are an indicator of the size of the provider. If it is small, with lower sales volume, you can exercise greater strength relative to him or her, receive more direct attention and greater flexibility to your needs. If is a big supplier, you can have greater confidence in their system of production and supply, but will exercise less relative strength against him.

  1. Certifications

As previously commented, one aspect to assess value. Be in search of certifications, objectively, that the supplier has a good quality management system. Depending on the sector, further certificates may also be relevant.

  1. After-sales service

Depending on the characteristics of the product or service acquired more or less important after-sales service charge. Within this category is common aspects such as technical assistance, servicing, return policy or guarantees offered by the provider are evaluated.

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  1. Career

The history and image of the supplier in the sector should be taken into account. It is available to other companies that have experience with it, especially in those most fragmented sectors. Also, you can study its public information regarding incidents of payment or submission of annual accounts, its Internet news and comments in social networks.

  1. Economic situation – Financial

Finally, if the financial situation is stable provider, there are more chances that your supplies are of quality and insurance. If by contrast, financial difficulties, you can stop filling orders. For this situation it is important to analyze both ratios (indicators that express the relationship between two economic or financial variables, so that the result is more significant than that of each variable separately, which are based on past accounting information) as ratings (ratings on future situations in terms of bad debts, solvency or profitability, which are made ​​by specialist companies).

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