When you are running a business, there will be times when you need to find new suppliers. Perhaps this will be because you are looking to scale up. Or it may be because your existing supplier no longer offers great value for money. Whatever reason you have for seeking new suppliers, when it comes to finding the right one for you, you will want to take your time and assess who is out there and learn what they can offer your business.
What Do You Require from Suppliers
To begin your search, you need to establish what you require from a supplier, and at this stage, you need to be as specific as you possibly can. You may find that you need to reach out to several suppliers to fulfil your ongoing business needs. For instance, you may need pizza boxes for your takeout business, and these pizza boxes may need to be made from sustainable materials. Or you may find that you need new suppliers for ingredients as your old one has increased (unsustainably) in price. Understanding what you need and want from suppliers will help you focus your search.
Top Tip: Don’t just look at suppliers in your local area. Look at those further afield, too, as they may well offer better prices and better product ranges.
Are Minimum Order Requirements in Place?
Once you have established which suppliers you need for your business, you then must reach out to them. See if they have minimum order requirements in place. This may not feel like much at the searching stage, but it can influence who you ultimately choose. If a supplier requires large orders to be placed, then it may impact your end pricing strategy. It will also impact how often you purchase from a new supplier.
Top Tip: Do not be tempted to purchase more than you need (even if the pricing is more attractive). When you have surplus products, you have to find somewhere to store them, which can cost you more.
Looking at Who Competitors Use
Your competitors are going to use different suppliers to what you use, but who exactly are they using, and what can they offer you? Competitors may be using suppliers that are offering more sustainable items. Or they may be using suppliers that are allowing them to purchase higher quantities on credit. Establishing where your competitors are getting their supplies and products from could prove advantageous.
Relying on Recommendations
Other business owners are going to have recommendations that they can share with you. Asking non-competing business owners (at networking events) who they are using and why is important. Not all suppliers advertise or heavily publicise their products, so relying on word-of-mouth recommendations may be crucial in your industry.
Top Tip: Reach out to suppliers as soon as you can because not all new suppliers are taking on new customers or businesses. When you reach out to a supplier early on in your search, you can see if there is potential for a future relationship to be built.
