The number one most important aspect in the procurement world is supplier research and vetting.
Today’s post is by Ashley Riviello, Account Manager at SafeSourcing, Inc.
The number one most important aspect in the procurement world is supplier research and vetting. If you want to run a successful RFQ, you have to vet the suppliers and make sure the suppliers you have involved can do exactly what you need them to. A good relationship with the right suppliers offers you products and services that improve your brand and deliver better user experiences. According to Softco, selecting first-rate suppliers and weeding out low-performing vendors is key to reaching your supplier relationship and compliance management goals. Here are some important questions that you and your team should consider before engaging potential suppliers during the supplier selection process.
- What are your clients supply requirements? The first thing you need to do is establish exactly what products or services your client is looking to source. The more specifications, the better the supplier research can be.
- Whom, within your company, will complete your supplier research? Use people within your company that have the best knowledge on particular categories. Sometime those people can help narrow down the list better than someone with in the company that has never worked within that category.
- Do you need a local or regional supplier? You want to establish from the beginning if you are looking for local vendors or national vendors, or both. Sometimes you may even need to find overseas vendors, however, you want to make sure the shipping and/or freight is low enough to benefit your client’s needs.
- When is the lowest bidder not the correct supplier to choose? Sometimes the lowest bidder isn’t always the best fit. You need to request samples, if need be, and make sure the lowest bidder’s product or service meets the requirements. Sometimes sticking with your current supplier, but pay a little more than the lowest bidder, is worth keeping that relationship.
- When is a vendor visit necessary? When time allows, sometimes it is necessary to make a quick visit to suppliers and establish a customer relationship. During that visit, you and your team will want to take note of the supplier’s plant capacity, current volume of work, manufacturing processes, and work environment.
Even if you are not looking source a certain category, these are things you should always be asking vendors as you are looking to switch vendors or are searching for a better price. SafeSourcing specializes in this process.
For more information on how SafeSourcing can help in your procurement efforts, or on our Risk Free trial program, please contact a SafeSourcing Customer Service Representative. We have an entire team ready to assist you today.