Internet Business Service Potential
Finding and Evaluating Suppliers
Business people or companies certainly want to find suppliers who can meet the needs of production materials or exceed their needs. These company quality requirements can be referred to as the quality characteristics of the service products provided by the supplier.
In looking for suppliers, business people not only focus on gathering information about prices, but also need information about whether the supplier is appropriate and reliable? So it’s a good idea for business people to do research first about the choice of suppliers. This is also useful later for business people where consumers will get quality products.
For consideration, here we provide some tips that can be used as a reference in finding and evaluating the best supplier for your company.
How to Find and Evaluate Suppliers
The main responsibility of a company is to maintain good relations with suppliers, where suppliers are parties who provide and sell goods and services (can be in the form of production materials) that the company needs to operate.
Thus, an evaluation stage is needed with the aim of selecting quality suppliers who can be invited to work together in the business to be run.
From a number of suppliers on the list, an evaluation process is carried out so that the number of choices becomes less. For this reason, a survey can be carried out to obtain information about the condition of suppliers.
To find the right supplier, companies need to collect a number of information including:
1. Supplier capabilities from a technical point of view. This information can be obtained from operational conditions, availability of production equipment, and the ability of experts.
2. Is the available capacity sufficient or not to fulfill the orders required by the company
3. Suppliers pay attention to aspects of quality control and quality assurance of goods or not.
In finding and selecting suppliers, generally the company’s purchasing department determines its choice based on price alone. In fact, if the company wants to establish a good partnership, the company’s need for suppliers must continue to grow, not only at low prices.
Companies should also consider the concept of supplier delivery, management relationships, support for company projects or future expansion, and supplier services.
And the following are supplier service criteria that need to be considered by the company so that it can be taken into consideration in the selection criteria:
- Timeliness of services such as distribution of materials or production materials.
- The level of service accuracy relates to reliable services and minimizing errors in services and transactions.
- Responsible for handling receipt of orders or complaints submitted by the company.
- Completeness of facilities and infrastructure, concerning the availability of the scope of services and the availability of other adequate supporting facilities.
- Speed of service, flexibility of service and handling of special requests.
In addition, information or information relating to the history of supplier relationships with other industrial parties is required. For example, if there is a dispute, what steps have been taken by the supplier.
Before selecting a supplier, the company also needs to obtain information about previous customer data such as the supplier’s reputation in the eyes of other industry parties. This can also be considered by the company to determine whether the supplier is eligible or not to become a supplier of production materials if historically it has refused or failed to fulfill a number of orders.
Purpose of Supplier Evaluation
The purpose of implementing a supplier assessment is to:
- Generate quantitative and objective measurements of supplier performance
- Assist in carrying out a balanced assessment of supplier performance for all categories of buyer needs
- Provide the same factual information about overall performance, both for buyers and suppliers
- Identify problem areas so that corrective action can be concentrated
Factors to Consider in Finding Suppliers
The company wants to get materials or production materials on time and quickly, at the lowest possible price and the best quality. Of the three targets, it can be described the factors that can be taken into consideration by the company in finding suppliers, namely:
1. Offers at a lower price than its competitors.
2. Supplier offerings have to do with the speed and convenience for companies to get the products they need.
3. Offering quality products, for example to suppliers of fabrication, the use of materials with better quality than its competitors.
Then, where do business people get suppliers from?
1. Visit industrial centers, workshops, and bazaars
Business people or prospective entrepreneurs in developing their business networks can directly visit industrial centers, workshops, and bazaars. By visiting suppliers directly to the place of production or point of sale, business people can see firsthand the process of producing raw goods into semi-finished goods or finished goods.
In addition, beginners can immediately see the owner, thereby reducing the risk of being deceived and increasing the trust of both parties. In fact, it is possible that the price negotiation process will be easier to carry out so that the price given by the supplier is lower than its competitors.
By diligently visiting the bazaar, the opportunity for business people to get suppliers is very wide open because there are still many other business options that may still be related to businesses that have been or will be run. The large number of participants who take part in the bazaar will open up opportunities for business people to get suppliers with the best prices.
2. Connect with suppliers through online stores or social media
Currently, scarcity and time constraints do not prevent business actors from expanding their business networks. Business people can compile a list of online stores that are ready to supply the goods or production materials they need. By visiting online stores or suppliers’ social media, business people will also get many choices with various prices offered. This will certainly make it easier for prospective entrepreneurs to start their business.
3. Obtaining production materials from the market
In addition to online stores, now business people can also look for potential suppliers through the marketplace (online market partners). The chances of getting a quality supplier in the market are usually greater because this is where many traders congregate, or even directly.
Business people can directly check one by one the suppliers of production materials or materials on the market to be used as suppliers. By comparing prices and looking at the description of each item being sold, it will open up greater opportunities to get the best price, but still have quality. Several marketplaces that can be used to get suppliers of production materials are blibli.com, Shopee, Tokopedia, and Bukalapak.
4. Looking for suppliers from buying and selling forums (business)
Business people can search for production materials or materials through online business forums such as Kaskus, Bersocial.com and others. You can gather some information by asking questions in the thread created by the seller if the information shared is not clear.
5. Get the best prices from suppliers through price comparison sites
Although business people are advised not only to focus on the prices provided by suppliers, there is nothing wrong if the market you are targeting is the lower middle class. You can use price comparison sites such as index.com, pricearea.com, priceza.co.id, priceprice.com, and pricebook.com to get the best prices. You can easily find suppliers by entering the type of product, then the website will display various store references with varying prices.
Those are tips for finding and choosing suppliers, as well as how to evaluate supplier performance so that business people hope to get quality suppliers.