When evaluating suppliers, both services orientated and manufacturing, when you first meet the potential vendor and based on the immediate surrounding your gut forms a first impression.
When starting preliminary discussions with potential new vendors or third party partners, it is advisable to have a confidentiality agreement in place to protect intellectual property or what may be considered information that you do not want competitors or business partners to know. This first step must be considered as a general course of action to protect Confidential Information.
Supply Chain Solutions No.22 – Shared vision, value driven attitude and adaptable, does that equal the perfect Supplier?
There are the different reason why sourcing activities need to take place, be it market research, business growth and capacity expansion, market risk and diversification or replacement of existing underperforming vendors.
Sourcing an individual supplier is only part of the sourcing equation, key success comes when you have a strategic supplier matrix that covers all product categories, brand price points and meets business goals and objectives.
Some SME businesses globally rely on a single supplier to supply all their products. Due to their range of categories sold at wholesale and retail, it must be assumed the seller is an agent or trading company. While this allows the buyer to focus on their core competencies, it allows for considerable supply chain risk and possibly margin loss.
Brands today required vendors that are both capable manufactures and socially and ethically compliant. While many major global retailers and brands have assessment and qualification standards, a greater number of medium to small brands have nothing in place.
There are a few ways you can go about achieving your margin objectives. You can engineer the product cost to price, negotiate to price or a combination of both. Below we are going to explore engineering product cost to gain a winning price.
Ensureing there is the correct level of quality managment and compliance to manage your supply chain, achieve business and brand value is critical in todays ever competitive market. Are you or your team prequalifing suppliers to ensure quality and social compliance goals are achieved?
Sourcing begins with a vision of defining objects that services the greater need of the commercial enterprise, brands, product categories and raw materials. If you don’t know the business and subcategory vision, you will not be able to achieve all needs.