As a business owner or manager, dealing with suppliers is something you can’t shy away from. If not done properly, it could significantly increase your expenses. Most of your purchases should be done yourself (internally through a department or employees), and outsource those you can’t handle.
Dealing with suppliers can be complicated if you’re overseeing projects, I’ve heard and seen instances of projects started and not completed, or even payments made without the goods been delivered. None of both situations are suitable.
There might even be ways to redress the issues, don’t forget the phrase “prevention is better than cure”, you also need to protect yourself against litigations.
BELOW ARE SOME TIPS IN DEALING WITH SUPPLIERS
1. RESEARCH YOUR SUPPLIER
It would be in you, and your company’s interest to do some research before dealing with suppliers, check out the suppliers for their integrity, competence, and so on. Many businesses can claim to be suppliers, making it difficult to choose from, some might even be recommended to you. Irrespective of who or which business they are, do your background check.
This research can be simple to basic, you can get started by checking their online presence, you can also pay someone to carry it out for you. Read more about checking business legitimacy by clicking here.
Online platforms like Experian can be used.
What are your business management needs or challenges? GET STARTED with a cloud software trusted by over 6.1 MILLION BUSINESS worldwide HERE
2. SEEK RECOMMENDATIONS AND PROPOSALS
Use your professional networks and forums for advice in dealing with suppliers, most will share them with you.
Another step you need to take is to request for proposals (RFP), so you can evaluate accordingly to know what each supplier has to offer. If you don’t have the know-how, you can outsource it.
3. GOING FOR THE CHEAPEST?
Are you contemplating going for the cheapest supplier? It is understandable you want to reduce costs. From my experience, most times it doesn’t worth it going for the cheapest. Nonetheless, you can go for who aligns with your objectives or budgets, it is the result that counts.
4. SECURE YOURSELF WITH A CONTRACT
Make sure you protect yourself and business from any issues that may arise, the contract should state the terms and conditions, for example
· When and how the payments would be made.
· What would happen if the project spills over?
· Agree on penalties and force majeure conditions.
· Risks.
What are your HR, Payroll, and Employee self-service needs and requirements? With Sage 300 People software, the only limit is your ambition. Get started here
A written contract is there to protect you when dealing with suppliers.
Conclusively, seek integrity and good quality of service from your suppliers, this might save a good percentage of the issues that may arise when dealing with suppliers.
You can also read my article on money mistakes business make they may one day regret here
Leave a Comment