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Suppliers evaluation: instruction for use

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21/01/2020
Suppliers evaluation: instruction for use

The free market is an advantage for buyers, but…

A market that gives space to everyone is undoubtedly a huge advantage for buyers. The alternatives are flourishing and the suppliers to compete are reshaping prices, studying the requests of the buyers to develop offers, working on the quality of the listed items.

Therefore, buyers have a wide choice taken according to their needs and budget. However, we must also consider the other side of the coin: buyers have to deal with a very varied world of suppliers! It is essential to know how to decide who to place their order to, paying attention to the reliability of the offer and the quality of the stock that is proposed.

The elements to evaluate a supplier

During the selection phase, it is necessary to consult the references left by previous buyers, to understand the quality of the material they have received and the critical points they have found. Another aspect to consider is the relationship that the supplier has with the customers.

It is very difficult to find a “perfect” supplier, which is someone who has never had to manage quality problems in some orders. In this perspective, the procedures he adopts in technical and commercial assistance become an important measure of evaluation. For an objective judgment, look for the answers to these questions among the references: does the supplier provide a complete and integrated support and what would be the timing? Do they refund the customers in case of non-conformity of the goods and if so, how? Do they have insurance that covers this? All this will be witnessed by some references of yours that we have been able to interview.

Attention then to the next phase, the one before purchase: the negotiation. It is important to verify the truthfulness of the stock and then:

  • the photo of the whole package or of the single components (for the photos of the single components, they will inevitably open the box, so do the considerations that you consider more appropriate)
  • the photo of the labels on the packaging: they show us if the goods have already been opened and repacked and give us an idea of the origin of the material, whether it comes from the parent company or a distributor
  • the test reports carried out: in the case of electronic components are essential and help you to assess the value of the stock more accurately

All this is for the first screening. We have seen that, at these stages, the elements to be assessed are different, so it takes a lot of time and expertise if you don’t want to get screwed over.

DIY supplier choice?

You can choose to do everything yourself to save money, but you risk to fall into the network of the unreliable suppliers, losing valuable time and money that would be more useful if employed in the development of your business. The estimated savings could disappear and suddenly turn into an unnecessary cost that you have to bear.

Or you can avoid unpleasant surprises by turning to professionals who know in-depth the market in which they operate daily. Are you looking for advice on the supply of electronic components? Contact us by filling out the form below.

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