What to Ask When Choosing a Supplier

Your suppliers are essentially an extension of your business, so as a small business owner, it's crucial to carefully consider your supplier partnerships. While cost is always a factor, selecting a supplier goes beyond just choosing the fastest and cheapest vendors. Here are the most important questions to ask yourself when selecting a supplier.

1. What are my key selection criteria?
   Identify the important factors when searching for a supplier and cross-check your options against this list:some text
   • Products required
   • Quantity
   • Product quality
   • Current and future product availability
   • Delivery times
   • Price
   • Product labels
2. Should I go international or local?
   There is no definitive answer, as both options have pros and cons. The choice depends on your customer base and what you are offering. Generally, imports from major manufacturing markets like China tend to be cheaper, as these suppliers often carry more inventory and can ship products faster. However, shipping can still take weeks. For drop shipping businesses, where you don't hold inventory but want to offer a variety of options, international suppliers are often preferred.
   Local suppliers can also be beneficial for small business owners, allowing you to build a closer relationship, visit their facilities, conduct labor standard verifications, and negotiate prices face-to-face. Local shipping can lead to faster turnaround times, and supporting local businesses can resonate with your customer base, fostering loyalty.
3. Does the supplier fit with my company values?
   Consider whether your supplier is sourcing products ethically. If they do not align with your values, this could reflect poorly on your business. Research their background and ask hard questions to ensure their practices align with your standards.
4. How is their customer service?
   Just as you strive to provide high-quality service to your customers, it’s important to receive the same level of service from your suppliers. Evaluate your initial experience: Did you receive timely, friendly, and consistent service? If not, it may be best to look elsewhere.
5. Have I compared carefully?
   Once you receive a quote, assess it in relation to your core needs. For example, the supplier's location may be less critical than their product diversity. While price is important, low costs can sometimes indicate poor quality. Investigate how your supplier acquires their goods, as they may rely on third parties, which adds complexity to your supply chain.
6. Were they highly recommended?
   If possible, seek recommendations from friends and business acquaintances. Hearing from someone who has used the supplier's services can provide valuable insights into their strengths and weaknesses.

The Bottom Line

Your supplier is a crucial yet often overlooked part of your business. Relying solely on shortcuts and low prices may not serve you well in the long run. Make sure you have thoroughly researched and feel comfortable with your suppliers from end to end. By asking these essential questions, you can make sound decisions that will help build a strong supply chain for your business.

‍