Is your business growing quickly or are you about to begin a new product line? What about your maintenance, repair or operating parts needs? Maybe you are in the design phase and are looking to define your scope of a project. How do you identify and choose the right supplier for you?

Identifying and choosing a new supplier for your business can quickly become overwhelming due to the seemingly endless number of options out there.  We put together a guide to help you with the process.

Step #1: Outline your goals and concerns:

Maybe you are increasingly unhappy with your current supplier who is struggling to maintain his delivery times or has cost over runs. Maybe it is has been difficult for a supplier of yours to complete the project to your specifications.  Write down what you don’t like about your current vendor and what you are looking for in a new one.  Make sure to include the variety of services that you would like a true business partner to have.

Get specific….  Dive deep by setting up a meeting with your management team and purchasing department to outline what you love, hate and want.  What is on your wish list?  Don’t count anything out; you may just find a company that can do everything you desire and more.  Maybe you desire a fabricator that has their own powder coating operation in house?  Or possibly a machine shop that specializes in plastics?  Outline some “home run” options that might save you money.

Step #2: Establish a timeframe:

It can be super easy to jump ship with one supplier and quickly sign on with a new one after seeing new pricing. Try not to do this.  You may get yourself in the same unsatisfactory situation you’re in right now by being too quick in the process of finding a new company to serve you.

Outline a time frame that you would like to achieve including sufficient time to effectively view facilities, compare and finalize quotes. Sometimes a potential vendor may miss certain details that drastically change the amount of a project. Receiving a quick quote shows interest, but sometimes a little longer time frame while quoting may be more thorough and more effective to the end result.

Step #3: Assemble your staff:

Now that you have your goals and time frame established, it’s time to delegate the process of vendor selection and implementation. Before researching vendors, single out some of your top employees in different departments (at least two employees) and create a committee to certify the new vendor.

Who will select the new supplier? Who will be standing by while implementation happens? Who will manage the ongoing relationship with the partner? All of these are important questions to answer before moving forward.

Step #4: Evaluate suppliers:

Start searching for suppliers by looking at online reviews and talking with trusted colleagues or sales representatives your currently have and trust. From there, do some investigating. Pick up the phone (or have a member of your committee do this) and call the vendor’s customer service line. Does an employee at the company pick up quickly?

Once you are on the phone with a customer service representative, ask a few technical and non-technical questions about the company’s capabilities. How does the employee respond? Are they pleasant over the phone? Are they helpful? Are you getting transferred multiple times before your questions are answered?

Review the company’s website. Are there easy-to-access guides to help potential customers or even videos to walk clients through problems?

Step #5: Quote an Item and Evaluate:

After evaluating a number of vendors, narrow your list down to two or three companies and then ask for them to quote an item that you may need in the future or possibly use frequently. This may be an indicator for their thoroughness is quoting. Don’t make the item too simple as some shops have different niches than others.

Also don’t be afraid to ask them that if/when you run into problems, how it is handled?  As a part of the quoting process, research the cost of freight. A local manufacturer may come up with a higher per piece cost, but may be able to save you money on freight and the convenience of being LOCAL. You also should outline your favorite aspects of working with these suppliers?

Step #6: Make the choice:

By now, your gut (or that of your supplier committee members) will be telling you which company to go with. Consider the company’s price, its service record, recommendations from other customers and your feelings toward the supplier. Then act confidently, knowing that you are making the right decision for your business.