Whether you are a coffee shop or a clothing line, the suppliers that you partner with are important to the success and growth of your business. It is therefore vital that you work on building good supplier relationships, as they will reflect on the level and quality of service you receive, which in turn, reflects on your business. Choosing the right supplier should be something you invest time and research into, as it is an important step in starting your business, and should be treated as a partnership. This will enable you to establish a good relationship that works for both of you and is mutually beneficial. 

It doesn’t matter if you are looking to source reputable coffee suppliers or find a clothing manufacturer to work with, in any partnership, there are many important factors that you need to consider when choosing a supplier to work with. To help you get started, here are some top tips.

What is a supplier?

A supplier is a business or person that supplies you with a service or a product that plays a role in your business. For example, if you are a coffee shop, then you will have a supplier for your coffee beans, your coffee cups, your machines, and your furniture. It is a reciprocal relationship that requires cooperation, flexibility, and good communication to work effectively for both businesses involved. 

Benefits of working with a supplier

Working with suppliers can come with a range of benefits that can help you grow your business to new heights. 

Cost-efficient

If you find a good supplier to work with, you will be able to run a cost-efficient business. This is because a supplier usually signs into a long-term contract, and you become partners who work together. When you partner with a supplier on a long-term basis, there are usually cost reductions involved. It will also save you money as you don’t need to try and make all the products in-house, which includes hiring the right skills, and instead, provides you access to specialist skills, materials, and equipment. 

Efficiency 

When you partner with a supplier, you will quickly get to know each other's needs and develop good communication. Over time, your supplier will be able to use this information to increase the efficiency of the service they provide your business. You will quickly find that there are fewer delays, fewer questions, and fewer issues. The relationship will work smoothly and efficiently. 

Boost performance 

Working with a supplier can help boost your business performance. This is because you can outsource the manufacturing of the product to a provider who has specialist skills to be able to create a high-quality product. This saves your business a lot of time, money, and energy, and means you can boost your business performance and reputation with a good end product. 

Strong cash flow 

When you can boost your business performance when working with a good supplier, you are also going to create a strong cash flow. If you take the time to find a high-quality supplier and work with them on a long-term basis, you can produce a good quality product, keep your stock under control, and keep overhead costs down. If you keep changing suppliers or try to do it all in-house, you are going to harm your cash flow. 

Quality control 

Working with a supplier who understands your business needs, can help you identify any quality control problems early on in the process. Many suppliers have specialist knowledge within the industry and can share tips and advice, as well as point out any potential risks they deem important. This perspective from a specialist can significantly help the quality of the product that you sell as a business. 

Important factors to consider when partnering with a supplier 

Partnering with a supplier can make or break your business. Make sure you look out for these key considerations when choosing a supplier to work with. 

#1 Good reputation

Many businesses make the common mistake of choosing a supplier who is cheap and convenient. This is the typical choice as it enables a business to increase its profit margins. However, always choosing the supplier with the lowest price is not always the best way forward because it can come with an increased risk. With a low price, there often comes a compromise, which could be on the quality of the product or service, delays, or a lack of communication. When running a business, this is not the kind of risk you want to take. Instead, you should do your research into different suppliers, and find one that has a good reputation. This will help you find more credible and trustworthy suppliers to work with, that will reflect well on your business. When you consider the reputation of a supplier, you will be able to ensure they are known for their great products and high-quality service. At this stage of your business, finding a reputable supplier is worth investing more money into. 

#2 Value for money 

When choosing a supplier to work with, you want to ensure that you are getting the best value for your money. Regardless of the price, you should make sure the product or service is fit for purpose and will serve your customers well. It is important to remember that the value that the supplier provides you with, will reflect on your business reputation. 

To ensure you are choosing the supplier that provides the best value for money, you should first do a lot of research on the products and services that are currently on the market, what your competitors are selling, and the general level of quality that is produced. This will give you a good idea of what you are competing against in the market, and a base point that you should not fall below when it comes to quality and value. You should then find reputable suppliers that produce the product you require, visit their business if necessary, and ask for samples. You should obtain samples and quotes for a range of different suppliers, so you can compare the products first hand as this will allow you to see what value you get before signing any contracts and selling them to your customers. This will enable you to see for yourself which supplier will provide you with the best value for money, and you can make an informed decision.  

#3 Reasonable pricing 

You should be paying for what you get. If you pay for something cheap, you can expect a lower quality item. If you invest more money in the product or service, then you should be getting a higher value. However, if you are a new business, it can be difficult to know how much money to invest with a supplier. You should conduct market research to see what your competitors are spending, how much they are selling their products or services for, and what your ideal customers would be willing to spend on a product or service. You can do research, and conduct surveys and focus groups. This will give you a good idea of what is a reasonable price when looking for suppliers, as not only do you need to consider the supplier's costs but also how much you can sell the product or service for. When you know how much you want to spend, you can find suppliers that offer good value for money, at a reasonable price. A reasonable price will be different for everyone, so you must understand your business requirements first, to help you make a choice. Make sure you obtain at least three quotes from a variety of suppliers, so you can compare accordingly. 

#4 Good communication

Communication is vital in any business, especially when working with external partners such as suppliers. Communication is what keeps the business flowing and moving forward. Without it, there is a higher chance of mistakes being made and costly delays. When you choose the right supplier to work with, you should be aware of how they communicate with you throughout the entire process. They should be able to communicate efficiently and effectively. This includes being clear, concise, open, honest, transparent, and has the ability to maintain contact with you. Every business is likely to run into an issue from time to time, which is completely normal. A supplier shouldn’t be dismissed because of its mistakes or delays, instead, it should be judged on how they deal with them and communicate any issues with you. For example, if there is a technical fault that delays a shipment to you, they must communicate with you to keep you up to date, give an honest explanation, and provide you with a new time and an apology. This is in contrast to a supplier who does not care, does not communicate with you, and makes excuses.

Partnering with a supplier is an important step to make in any industry. Follow these top tips to find the right supplier to work with and grow your business to new heights.