In order for your small business to grow you need to make selecting good suppliers and vendors a significant part of your growth plan.
Evaluating Your Suppliers and VendorsSuppliers can be divided into four general categories:
Manufacturers: Prices from these sources are usually lowest unless the retailers’ location makes shipping freight costly.
Distributors: Their prices are higher than manufacturers but they can supply retailers with small orders from a variety of manufacturers. A lower freight bill and quick delivery time from a nearby distributor will compensate the higher costs.
Independent Craftspeople: This is the exclusive distributor of unique creations offered by independent craftspeople through trade shows or reps.
Import Sources: These are foreign goods from a domestic importer who operates as a domestic wholesaler.
What makes a good supplier? Price is important when selecting a supplier as this goes hand in hand with the growth of your business.
After price, reliability is another key factor as a reliable supplier will deliver the right number of goods, at the right time and in good shape. Reliability automatically indicates the stability of the company.
You’ll want to sign up with a supplier who has been in the business for a long time and has a solid reputation. Don’t forget location as merchandise ordered from a distant supplier can take a long time to get to you thus generating added freight costs.
Finally, your supplier must offer the latest, most advanced products and services. They should also be able to offer you a variety of attractive financial terms on purchases.
Post By: SimplyBiz This article has been repurposed for the purpose of this blog the original article can be sourced from :Entrepreneur.com
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