How do you choose a new supplier?

November 17th, 2017

After several devastating hurricanes, the United States ........

 

Today’s blog is by Margaret Stewart, Manager of HR and Administration at SafeSourcing Inc.

After several devastating hurricanes, the United States is in the cleanup, recovery, and rebuilding process for those areas hit worst. One notable area was the island of Puerto Rico, which was hit by multiple hurricanes, damaging a multitude of structures throughout and leaving the majority of the island without utilities. Because of this devastation, companies were sought to organize and begin the rebuilding of some of the necessities, like water and power.

One particular company, Whitefish, was contracted to begin the power grid restoration for the island, a contract worth hundreds of millions of dollars. However, whether through oversight or intentional, this company, based in rural Montana, had no experience with projects of this size and, in fact, only had two employees. After that information was made public, the contract was ultimately cancelled and eventually awarded to another, larger company. The aftermath of this award of business, however, was a lengthy delay in the rebuilding process at a time when fast response could literally save lives.

While choosing a new supplier of your own may not have such an impact on millions of people as the situation in Puerto Rico, choosing the wrong one can still have a large and negative impact on your organization as a whole. This could mean additional time spent processing orders, paying a higher price until agreements are made or reviewed, or even legal fees involved if a contractual dispute occurs.

This is why it is highly important to not only research any potential suppliers ahead of time, but also to vet those suppliers. At SafeSourcing, we go to great lengths to ensure all the right suppliers are included for projects that you may consider running, and exclude those that do not meet the high standard we expect.

For more information on how SafeSourcing can help with your sourcing needs, or on our Risk Free trial program, please contact a SafeSourcing Customer Service representative. We have an entire team ready to assist you today.

We look forward to and appreciate your comments.

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