How to Choose your suppliers and make decision

In our days internet makes our business life easy with the fast delivery of documentation, conference and communication but the huge quantity of supplier that you can found after a little search, put you in hard situation to make your choice.
The process of selecting suppliers for any business is something that requires a lot of time and analysis to get right.
Most of us base their research on shortlist factors such as products quality, price and services provided, but forget to verify if supplier is viable as business partner.

This means doing additional research, particularly if a vendor or buyer is particularly critical to your operations.

Financial stability
In some deal you must pay for goods in advance. This we can meet in some special deal in wish seller must prepare custom products. For seller this is the unique way to secure his business but for you as buyer you must check into sellers’ finances before giving them credit – and the reverse can be equally beneficial.
It will be better to ask your business partner to provide you some prove like requesting information like bank statements and credit histories. Companies with healthy banking history gave you more security, and reduce the chances of losing money because a vendor goes under before delivering an order.

What’s more, knowing that a supplier is financially stable can help to ensure you don’t have an unexpected break in the supply chain.

Shipping reliability
For us the best way to secure good products delivery is to ship by our self .this gave us the ability to control delivery time and quality, but in some deal we goes for supplier shipment due to price or availability.
If shipping is not under your control you have to examine your business partner’s shipping procedures and service. Get full details from your suppliers how products will travel to you – for example air freight or cargo ships and consider how these modes of transportation could affect your supplies, particularly based on the speed of the shipping method and things that could go wrong.
You can try to found and contact some of your suppliers’ other client to see how they conclude the deal, and if goods was delivered with the needed quality and condition.

For a new supplier, you need to know the following aspects:

1. Company Profile
2. Audit Checklist
– Business License
– Production Capacity
– Foreign Trade Capacity
– Product Research & Development Capacity
– Quality Management System and Product Certification
– Suppliers/Sub-contractors Control
– Production Progress Control
– Random Product Inspection and Continuous Improvement
– Company Development Plan

We found that consulting some government informative site can help to find the good suppler that can sweet your deal and provide the needed products.
If you are planning for a long term relationship, we would always recommend visiting suppliers’ factory and seeing how the operations are going. Is there raw material in their staging areas? Do they have finished product? Is the production line operating? These are some of the basic things I would watch out for.
Some time we use agent cervices and especially in china as we have problem with language, and by this way we can secure for our self a continuous control on supplier for some cost.
By this way of work we safe our time to focus on other deal and organize goods reception in our country.