What's the best way to gain a competitive edge by sourcing from emerging and alternative suppliers?

1 What are emerging and alternative suppliers?

Emerging and alternative suppliers are those that offer new or different products, services, or solutions that can meet your sourcing needs. They may come from emerging markets, niche industries, or innovative sectors. They may also have different business models, values, or capabilities than your traditional suppliers. Some examples of emerging and alternative suppliers are social enterprises, local artisans, green vendors, or digital platforms.

2 Why source from emerging and alternative suppliers?

Sourcing from emerging and alternative suppliers can help you achieve a range of strategic objectives. This could include improving your cost efficiency and profitability, enhancing innovation and differentiation, strengthening resilience and agility, as well as building your reputation and sustainability. You may be able to access lower prices, higher quality, faster delivery, new ideas, technologies, or markets. Additionally, you can diversify your supply base, reduce dependencies, increase flexibility, support social and environmental causes, comply with regulations, or meet customer expectations.

3 How to find emerging and alternative suppliers?

Finding emerging and alternative suppliers can be difficult, as they may not have an established online presence, a formal certification, or a proven track record. To overcome this barrier, you can consider referrals and recommendations from your existing suppliers, customers, or partners. Additionally, online directories, databases, or platforms that specialize in emerging and alternative suppliers can be helpful. You can also look into industry associations, trade shows, or events that showcase emerging and alternative suppliers. Furthermore, social media, blogs, or podcasts that feature emerging and alternative suppliers may provide useful information.

4 How to evaluate emerging and alternative suppliers?

Evaluating emerging and alternative suppliers can be tricky, as they may not have the same standards, processes, or documentation as your traditional suppliers. To mitigate this risk, you can use various criteria and tools such as assessing their capability and capacity, verifying their compatibility and compliance, exploring their credibility and reliability, and looking into their creativity and flexibility. This includes examining their technical skills, production facilities, quality systems, delivery methods, alignment with your values, goals, and requirements, reputation, references, performance history, potential to offer new or customized solutions, ability to respond to changes or solve problems.

5 How to manage emerging and alternative suppliers?

Managing emerging and alternative suppliers can be demanding, as they may require more support, communication, or collaboration than your traditional suppliers. To foster this relationship, it's important to define clear and realistic expectations, terms, and conditions for both parties. You should also track and evaluate their performance, feedback, and improvement. Additionally, provide them with guidance, resources, or opportunities to enhance their skills, knowledge, or capabilities. Lastly, recognize their contributions, achievements, or impacts. Sourcing from emerging and alternative suppliers can be a rewarding and profitable experience if done correctly. Following these tips and best practices can unlock the potential of emerging and alternative suppliers and give you a competitive edge in your market.

6 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?