How to Find the Right Supplier

Finding the right supplier is, perhaps, one of the most important factors in the success of your business. A good supplier will be an asset to your business and will help you to fulfil your promise to your customers. 

Through trial and error, I learned that you need to work hard at checking your suppliers and researching them before you commit to them and send your money to them in return for their products or services.

I own a smartphone repair business which relies heavily on supplier providing parts and tools so I can fix my customers' iPhones, iPads and other smart devices. Most of the replacements screens fitted onto the devices, for example, originate in China. Often I use a supplier that is based in the UK to supply parts. If I can, I order parts directly from China.

Getting the right suppliers will save you money, time and your repuatation if you choose them wisely. Here is a guide to choosing the right suppliers.

Trust

The challenge is how do you know whether to trust the suppliers or not? How do you know whether they will actually supply what you order?

Fortunately, if you use eBay or Alibaba as a source for suppliers, they have a recommendation tools and symbols, such as the 'eBay Top-Rated seller logo to the left. That's a good sign that the supplier has a good reputation.

However, for eBay suppliers, it's worth digging a little deeper and looking at their 'Feedback' score which is based upon customer ratings of their service. I normally make sure that I only pick suppliers with a feedback score of 99.7%.

Alibaba has a different approach. They have a 'Supplier Assessment' report which is an independently written report about the supplier which contains videos about the company, for example, so you can see their factory and understand more about the people you are thinking about paying money to in return for goods.

This is also very useful because you can assess the potential supplier without having to travel to China, or wherever they are based, to get a feel for them, thereby saving you a lot of time and money.

Alibaba has a good video explaining their 'Supplier Assessment' service on their website.

Shop Around

Price really is not everything when choosing a supplier. It's important but not the only factor. So, when choosing a supplier, do check their prices. You may often find suppliers who offer much lower prices on their products or services, but ask yourself why they are so much cheaper.

It's easy to get excited about really low prices but think about it if you have promised a customer to deliver your product or service to them or you are getting excited about the profit you will make on the sale and then one of these things happens:

• The supplier does not send the part in time so you fail to deliver on time for your customer.
• The part from the supplier is faulty so you have to send it back and tell your customer there will be a delay in service for them.
• The supplier sends you a part which is obviously not new (this has happened to me) causing delays.
• The supplier sends a product which is damaged which you have to send back again. 

These are all very real problems which you will need to factor in to your products, prices or services. It's quite common that the cheaper suppliers are cheaper for some reasons which should concern you. Paying a little extra to get good service and quality products will save you time, money and your reputation. 

Also, I have bought from suppliers who cold-called me. I gave one particular supplier an order to try them out. They sent me products which were not new, despite the description on their website and from what the salesperson said. I no longer buy from them and don't like to buy from cold-callers.

Read the Small Print

Contracts and Terms & Conditions may seem exceptionally dull things to read. 

But, don't fool yourself. Contracts and agreements are the binding aspects of business which give you peace of mind. Read the details in any contracts you are asked to sign. Ask questions about anything you do not understand in a contract or terms & conditions.  Don't feel pressurised to sign anything until you know what you are letting yourself in for.

Here are some items to check in an agreement before you sign it:

• Check the policy on returning goods if they are faulty or not as described. 
• Check the term (or length of the agreement) so you don't sign up to a contract which you cannot change get out of for a period which makes no business sense to you.
• Check the details on the discount you will receive from your supplier. 
• Check the confidentiality clauses so that you know your details will not be shared. 

A good contractor agreement helps you and your supplier. It will help you and, ultimately, help your customers.

Suppliers are vital for any business. Choose wisely and they will help you. Be prepared to pay for good service and good quality products. Take your time when choosing and ask for recommendations from people you trust.