How to make a correct selection of suppliers?

The success of a company is mainly related to the acquisition of supplies and the correct supplier selectionare two factors that play a fundamental role in the development of the company.

Currently, they show much more empathy and demand for products and services that responsibly comply with the production system that companies offer.

Make a good supplier selection and management It has become one of the main tasks of organizations, since it is an important competitive tool before other companies. The process of this type of selection is different in all companies, everything will depend on their size.

Key factors for supplier selection

Companies must know in advance some factors that influence the procedure for the selection of suppliers. Some of these key factors are:

• References: It is convenient to request opinions from other organizations and clients who know the provider and this way you will have the information of your prestige, responsiveness, management of activities, geographical position, compliance with quality standards and trajectory within From the market.
• Quality: For many companies, the quality of the acquisition of inputs is essential, because they place great value on existing components and materials.
• Profile analysis: It is important to have knowledge about the general characteristics of the supplier, such as what its activities are, how prestigious it is and how it has performed in the market.
• Infrastructure and technology: It is the ability of the supplier to use the technological elements that are required to offer quality inputs. In the same way, the distribution networks, the facilities and the commercialization that determine the final work process must be taken into account.
• Price: This is one of the most relevant points for many companies in recruitment management. This is due to the fact that both the price and the quality of the products must be very attractive, as well as the payment systems, extra expenses and the possible discounts that the provider offers in some opportunities.
• Business philosophy: Compatibility is an essential factor at the time of selection, so they must be appreciated elements that are known to the demanding company such as the way of working, quality and compliance with deadlines.
• After sales: This factor is as important as the price, the references and the quality when making the selection. The after-sales service includes advice, technical service, extended warranties on the purchased input and the customer service, which is highly valued by companies in case they have to make returns or exchanges of goods.

Evaluation steps for supplier selection

There are various processes to evaluate suppliers, however, it is necessary to follow some steps for supplier selection that will facilitate the company a better search for its commercial allies:

Supplier survey

Sufficient time must be invested in this step to carry out the evaluation process, due to the collection of information and references that the search requires. Among the most common are:

• Competence: It is important to inquire about the suppliers of the competition.
• Special exhibitions: You must attend exhibitions where there are new and known suppliers where they show their innovations.
• recommendations: References are necessary to know your level of experience and rule out possibilities.
• Internet: It is the means by which new suppliers can be found with references from their clients.

Selection judgments

To choose the right one, the company must be clear about what it is looking for, so it can easily choose according to its criteria. Among the requirements are delivery times, quality, business prestige, price, payment methods, delivery time and guarantees.

Evaluation

This step is very useful, here you can compare and detail all the advantages and disadvantages that they have to work with them. Also, they can be evaluated through meetings, where doubts are clarified and where the supplier can present his proposals for a possible contract.

Selection

Once all the above steps have been done, the company will be able to select the one that suits them best and meets the requirements for the company. By choosing the supplier, the company is in the duty of creating a solid long-term relationship.

Types of providers

In the search and selection of providers are the following categories:

• Dealers: They are the wholesalers or intermediaries that are characterized by buying large quantities from different manufacturers to resell to retailers. Despite their high prices, delivery time and shipping charges are less, which will make up for the high price.
• Importers: They work in the same way as national wholesalers, but they offer imported products. In the event that the company does not know this type of supplier, it is advisable to go to the country directly to buy the merchandise you want.
• Manufacturers: Some retailers buy from independent companies that work with products from different companies. They mostly have lower prices and the shipping cost will depend on the location.
• Independent: They are almost always freelance artisans who offer their merchandise through representatives offering exclusive creations, usually seen at trade shows.

Benefits of vendor selection

The evaluation for supplier selection as a key element, allows companies to obtain multiple benefits such as those shown below:

• Decrease the safety stock and avoid losses and stock breakages.
• Provides affordable options with a high level of quality.
• Guarantees to perform work with qualified suppliers.
• It allows to have functional suppliers that gives the company peace of mind.
• They improve the customer loyalty process.

Make a good selection of providers, who understand similar principles to the company and a relationship that allows a mutual benefit and fluidity in the Communication is an essential factor for the organization, especially if what you want is management based on quality.