By: Eric Tang
For many companies, suppliers are like the source of rivers, essential and indispensable. However, in the current era of information flow, looking for a supplier without very specific objectives is equivalent to finding a needle in a haystack. Thus, let us share some of our experience in two aspects: how to find and how to choose a suitable supplier.
Cost is an important consideration when choosing a new supplier. Thus, the price-oriented decision-making mechanism makes buyers more inclined to choose suppliers with lower quotations. However, suppose the quality of the product is poor, or the on-time delivery is not up to standard. In that case, the few costs saved on the product quotation will be wasted and may not be enough to offset the additional expense of quality complaints and excessive shipping costs. Therefore, in addition to the premise of low costs, there are other important factors to consider when choosing suppliers: guaranteed quality, quantity, and delivery times.
In addition to procurement considerations, suppliers’ capabilities should be assessed by technicians and quality managers, ideally by a professional assessment team. The most suitable supplier is finally selected through a comprehensive evaluation of suppliers in closely related departments in the chain.
The size of the project also has some influence on the choice of suppliers. For example, for projects with great demand and relatively high value, the scale and long-term stability of the supplier are necessary conditions;
projects with wide varieties, small batches, and low target prices require an appropriate process and quality control that meets the project requirements and suppliers with a high willingness to cooperate; For low-demand, low-value projects, it is best to find suppliers who already have a mature collaborative relationship and involve them in other larger projects.
If you have any further questions about the selection of suitable suppliers, please don’t hesitate to get in touch with us at purchase@bdp-mc.com.
Our bdp Mechanical Components team is happy to provide you with advice and assistance.
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