If you have a procurement need, then you need to find the right supplier. In this article, we will tell you how to source reliable vendors and how to reduce procurement costs.
Keep your eyes peeled.
In the initial part of sourcing. Finding the right supplier is significant.
In the context of global integration, finding suppliers through the Internet is undoubtedly the best way to increase efficiency. This will save your time.
However, there are currently many traders throughout the supply chain, and these traders are often rarely involved in product design and development. Many cost-saving purchases are made from the original manufacturer. In fact, the sourcing process is a process of screening and identifying manufacturers. If you choose a new supplier, then you must carefully review the terms of agreements, as well as other potential issues.
We can initially check whether a company is a trader or a manufacturer by checking the following aspects:
1. To check if the supplier's product series and catalog are consistent.
Manufacturers draw up production plans in advance and release new products on an ongoing basis. Therefore, their product series are traceable, for example, Wanda Eyewear's aluminum-magnesium & titanium alloy series are named as
YJ series, you can see the product models from YJ2009-YJ2050, they are continuous, uniform and regular. These are the plans made before the production. There will be no problems.
Traders, on the other hand, are getting their products from other manufacturers with very disorganized product models, and you may see models such as Named 9328 and 64352 grouped into the same series - or even not grouped at all - because they have no way to provide their customers with a professional and uniform product catalog.
2. Go through the company information of the target supplier.
Checking the target supplier's company profile is one of the most straightforward ways to do this. Many traders will take factory photos from the manufacturer to put on their pages, so they will avoid photos that show the manufacturer's name. Manufacturers, on the other hand, do not have such concerns.
As for third-party factory inspections, manufacturers are always welcome to this. You can look for professional organizations to inspect your target suppliers, such as SGS, BV, TUV, etc.. They will send you a professional inspection report to dispel all your worries.
3. To check the transaction information of the target supplier.
The manufacturer's orders are very stable, and many customers who have been working together for years are trading offline. So on some Internet platforms they transact much less frequently than traders, but the number of transactions is much higher. At the same time, the reviews will be much less.
You can notice that traders, retailers care a lot about customer reviews, because more ratings data can attract guests, and the retail approach is easier to collect data. On the contrary, the target guests of manufacturers will be much more rational, they will consider many factors together and communicate deeply with the target suppliers, not just buy because of the number of transactions and reviews.
4. To check if the supplier has a reliable inventory situation.
Traders usually purchase products from other suppliers after receiving orders. They have almost no inventory pressure and will only stock a few hot products in advance, and when you want to check with them about the inventory situation, it usually takes a lot of time because they need to go ask other suppliers!
Manufacturers such as Wanda Eyewear have no such problems - because the warehouse is right next to them.Thanks to the sophisticated inventory management system, you can quickly get the exact inventory number by telling them what you want. This will be very helpful for your purchasing plan.
You need to find out if there is a person who specializes in handling sourcing customers. Also pay attention to whether the product or service is safe, reliable, effective, and trustworthy.
When you start to engage with suppliers, you need to reach an agreement with them. It is important to note that both sides want to minimize costs while maximizing profits, so it is crucial to confirm the details of the order, such as the details of the initial samples, the way the brand will be presented and all the places you are concerned about, once your needs are determined, they can confirm the work to be handled next.
Therefore it is cost effective to spend more time and effort in this area. It will reduce a lot of unnecessary hassles for future cooperation.
Get the right price
1. Let your suppliers know how you sell.
The sales department that conducts exclusive receptions for customers will give different service priorities depending on the type of customer.
If you are an offline wholesaler, then you should let the supplier know about your sales model. This will help the supplier to focus on helping you to get an advantage from wholesale marketing. The prices offered to you will also be more competitive.
If you are an online retailer, then the supplier can provide you with a one-click solution. All products come with full branded packaging and you can start selling as soon as you receive the goods.
2.Make comparisons and give your opinion.
If you are an experienced buyer, you can use your expertise on the product to determine if your supplier is professional. If the manufacturer thinks you are very experienced, they will give you a very generous price, because professional buyers can reduce a lot of costs on communication.
If you are new to the business, there is no need to be nervous at all. Be open to tell them your needs and concerns. An honest manufacturer will want to build a long-term relationship, while some traders just want to do a one-time business. Always remember to make one more comparison, and you will know who is better.