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Last updated on 2024年7月19日

You're seeking reliable suppliers for your business. How can you determine who to trust?

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Finding a trustworthy supplier is a critical step in ensuring the success and sustainability of your business. Suppliers not only provide you with the necessary goods and services to operate, but they also play a significant role in your supply chain's reliability and efficiency. As such, it's essential to approach supplier sourcing with a keen eye and a strategic mindset. You need to evaluate potential suppliers on various criteria such as their reputation, reliability, quality of goods, financial stability, and their ability to meet your business needs. By carefully assessing these factors, you can establish strong partnerships that will support your business objectives in the long term.

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1 Reputation Check

When considering suppliers, their reputation is an invaluable indicator of reliability. Start by soliciting feedback from other businesses within your industry. If possible, visit the supplier's operations to observe their processes and ask for customer references. A supplier with a solid reputation for quality, punctuality, and service is more likely to be a dependable partner for your business. Remember, a supplier's past performance with other clients can offer insights into how they may perform with your company.

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Muhammad Tauseef Raza

Logistics & Supply Chain Manager
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Reputation check is a valid chechmark for supplier reliability, however, its equally important that what kind of relationship you are going to built with potential supplier through a well defined contracting. 2nd sigficant node: to have a deeper dive into the relationship between the potential supplier and referred client. How good the referred client is going with contract terms and condition?Specially the payment terms, if he is not making regular payments, how can the supplier will abide by its contact obligations. So, its not necessary that if one supplier is not working well with one client, will do the same with your business.Thus, while judging the reputation check point all aspects of SRM must be considered rationally & judiciously.

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Christine Kreplins

International Procurement Manager. Life Coach.
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What we do: research companies with good industry reputations and positive reviews. Request product samples (if we need to send sample to clients, we ask them to pay for shipping; (usually the sample will come at no cost or minimal) to evaluate quality. Check if the suppliers are financially stable and hold necessary certifications. Communicate with them to gauge their responsiveness and assess if they can handle your current and future needs. Compare their pricing and payment terms, ensuring they offer competitive rates. Finally, review their history of reliability and consistency in deliveries. By following these steps, you can identify a trustworthy supplier who meets your business requirements.

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2 Financial Health

Evaluating a supplier's financial stability is crucial; it reduces the risk of disruptions in your supply chain. Request financial statements and consider consulting a financial analyst if necessary. A financially stable supplier is less likely to encounter insolvency issues that could affect their ability to deliver goods or services. You want to ensure that your supplier can withstand market fluctuations and maintain consistent service levels throughout your partnership.

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3 Quality Assurance

Quality assurance is a non-negotiable aspect of supplier sourcing. Insist on seeing certifications and standards compliance documents that are relevant to your industry. A visit to the supplier's facility to audit their processes can also provide assurance. Consistent quality in the products or services you receive is fundamental to your business's reputation and customer satisfaction. Make sure the supplier has robust quality control measures in place and is committed to maintaining high standards.

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Elny Kurniawati

Purchasing Department Head | CPSP by ISCEA
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For a new abroad supplier, we usually ask for their company profile, Quality Management Certification (if any), some list of questions that they need to fulfill along with some mandatory required shipping documents that they need to show. We can also ask our partner (if happens to be located) in the same area or nearby location to visit suppliers' office and or factory. For local suppliers, they need to show us their business trade license, their tax ID, list of customers and we visit their site for preliminary audit & interview.

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4 Scalability Potential

Consider the supplier's ability to scale operations to meet your growing business needs. A conversation about their capacity for increased production or service provision is important. Assess whether they have the necessary infrastructure and resources to scale up without compromising on quality or delivery times. A supplier that can grow with you is invaluable as it means you won't need to source new suppliers as your business expands.

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5 Communication Efficacy

Effective communication is the backbone of any successful business relationship. Evaluate how the supplier handles inquiries and their responsiveness to communication. Do they provide clear and timely updates? Are they transparent about challenges and proactive in finding solutions? A supplier with effective communication practices will contribute to smoother operations and can help you manage expectations within your own business.

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Elny Kurniawati

Purchasing Department Head | CPSP by ISCEA
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I consider this as one of the important aspects in business. How proactive suppliers when they communicate with customers shows their intentions and attention in business. Timely response, giving their possible alternatives of solutions in a problem, keeping their actions match to their words, shows respect and concern transparently will open more sincere cooperation which delivered long term business relationships.

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6 Ethical Standards

Lastly, aligning with suppliers that adhere to ethical standards is not only good for your conscience but also for your brand image. Investigate the supplier's labor practices, environmental policies, and any other ethical considerations relevant to your industry. A supplier that operates ethically will help you avoid potential scandals and can strengthen your brand's reputation for corporate responsibility.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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You're seeking reliable suppliers for your business. How can you determine who to trust?

1

2

3

4

5

6

7

1 Reputation Check

2 Financial Health

3 Quality Assurance

4 Scalability Potential

5 Communication Efficacy

6 Ethical Standards

7 Here’s what else to consider

Supplier Sourcing

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You're seeking reliable suppliers for your business. How can you determine who to trust?

1

2

3

4

5

6

7

1 Reputation Check

2 Financial Health

3 Quality Assurance

4 Scalability Potential

5 Communication Efficacy

6 Ethical Standards

7 Here’s what else to consider

Supplier Sourcing

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感谢您的反馈

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