If you’re in an industrial setting, you’re going to need vendors and suppliers to give you the things you need to continue operations. You might need materials like industrial grade nitrogen gas, or equipment for manufacturing or packaging.
Choosing the right industrial supplier is essential if you want to maintain the reliability and consistency of your operations and ultimately maximize your profitability. So what processes should you follow to find the right industrial supplier for your needs?
Starting Your Search
There are a few different ways you can begin this type of search:
- Referrals. One option is to hunt for referrals. Are there other businesses similar to yours that are already working with suppliers that you might need? Can they vouch for any particular suppliers? Referrals are especially powerful because they give you a warm introduction from a trustworthy source.
- Searches. You can also look for suppliers via online search. Search for whatever it is you’re looking for, then begin vetting suppliers who appear in your search results. Don’t forget to also look on specialized directories, social media websites, and other sources.
- Networking. Networking is another excellent strategy for finding candidates for suppliers. If you can’t generate any referrals, or can’t find what you’re looking for in online search, consider expanding your professional network and asking around. You might be surprised at what you’re able to find this way.
What to Consider When Hiring a New Industrial Supplier
Before you start comparing industrial supplier candidates, focus on:
- Your needs. What exactly do you need from your supplier? Obviously, you’ll need to think about what types of products they offer and the prices at which they offer them, but are there any other requirements that you have for your supply chain?
- Your priorities. Once your needs are met, you may have different priorities for your wants. For example, is it better to have a reliable, consistent supplier even if it means paying a bit more for their services? What trade-offs are you willing to make if you can’t find a perfect fit?
- Your budget. Also, you’ll need to think about your budget. How much are you able to pay for the things you need, and do you have any wiggle room on that?
From there, you can evaluate industrial supplier candidates based on:
- Capabilities/products. First and foremost, you’ll have to consider the capabilities and core products offered by this supplier. Do they sell the products and services you need? Are they able to produce and ship them in sufficient quantities to keep your organization running? Do they offer any peripheral products or services that could make your life easier?
- Availability. You also need to consider availability and capacity. This supplier might be at maximum output already, and if they are, they may not be able to make consistently large shipments of materials to your business. This may or may not be a concern for you.
- Communication. Communication is arguably one of the most important factors for supply chain management success. If you consistently have good communication with your suppliers, there will be fewer issues that arise, and you’ll have a much easier time navigating the issues that do. Make sure you have a point of contact with this supplier and that you can facilitate smooth, straightforward communication with them.
- Quality. You may also need to think about the quality of the products you’re receiving. In some cases, you can find cheaper products available, but these might come with a sacrifice in quality. Quality may or may not be a concern for your business with respect to this product or need.
- Prices. Obviously, you’ll also need to think about prices, especially if you’re working with a strict budget. Sometimes, it’s worth paying more for good products and a good relationship, but this may or may not be within your capabilities at the moment.
- Speed and efficiency. You’ll also need to focus on speed and efficiency. All other factors being equal, it’s better to have a supplier who can work quickly with minimal hiccups and disruptions. This way, if something goes wrong, or if your needs change, they can readily adapt.
- Reviews, testimonials, and reputation. Do your due diligence by reading reviews, testimonials, and evaluating the reputation of this supplier. Are other businesses happy with their work?
- Future potential. Don’t forget to consider the future potential of your relationship. Does this supplier have plans for expansion or improvements in the future?
With this guide, you should be in a better position to find the right industrial supplier for your needs. It’s going to take some research and due diligence to find the right fit, but with so many viable candidates, you should have no trouble finding someone who can make your supply chain work.
