How to Choose a Supplier

One of the aspects of being successful in business is producing a quality product as cost effectively as possible. Finding the right suppliers can add to the bottom line. Unreliable suppliers that cut corners and cannot keep up with demand can ruin the very business you've worked hard to establish and grow.

Instructions

Difficulty: Moderate

1. Look for a supplier that is known to have a quality product. The whole is a product of the sum of its parts. If you are creating the most expensive jewelry and use one material that is inferior, it affects the overall quality of your product.
2. Find a supplier that is reliable. If your supplier is the best in the business, but is temperamental and does not produce what you need in the time you need it, that is a liability you cannot afford. The best supplies in the world are useless to your business if they are not received on time.
3. Compare costs. Cheaper is not always better. A supplier that takes the time to ensure his supplies conform to governmental regulations might cost a little more than one from a supplier who cuts corners. Make sure you make an apples-to-apples comparison.
4. Ensure your supplier can keep up with demand. If you need 500 widgets a week and your supplier, although working to full capacity, can only handle 350, it's time to look for a different supplier.
5. Seek proof that your supplier is producing supplies up to code. You don't want to be brought into a lawsuit later on down the line because your supplier was cutting costs and not making the supplies up to code. Get documented proof of industry standard compliance.

Tips & Warnings

• Remember that negotiation is key in business. If one supplier has all that you want but not at the price that you want, negotiate. You've got nothing to lose.