Selection of suppliers and vendors is a great task to accomplish

Without purchasing the raw materials from the suppliers a business cannot function. Buying raw materials from only one supplier is not enough. Every unique raw material purchased for production is bought from a different supplier. From the internet, a business uses to the paper clips has to be purchased from a supplier. People who think their business can grow without the chain of suppliers will regret their decision soon.

Vendors and suppliers different from one another in several aspects, they can provide a lot of innovative ideas to increase productivity. They can help in tracing out competitors, implement new ideas for new products, and can contribute to the growth plan.

What are the different types of suppliers in the market?

1. Manufacturers: The retailers who supply the products directly to the consumers buy the product from the manufacturers at a low cost. They earn high marginal profit in their sale. The delivery of the order takes time as the order is high.

2. Distributors: they are also known as wholesalers and they provide the products to retailers who require small orders. Their prices are high but they have links through many numbers of manufacturers. They can provide the delivery in quick time.

3. Independent craftspeople: some of the sellers promote their products at public gatherings like malls and exhibitions. The earnings of the independent craftspeople are high because there are no intermediates.

4. Import dealer: many people cannot travel abroad to buy foreign goods. So the import wholesaler or distributor can carry out this work. They import the goods from abroad and sell it to the retailer.

How to select a good supplier?

There are a lot of factors an individual should consider when selecting a supplier for business.

Price: most of the people only consider price as an important aspect while purchasing from the supplier. Yes, indeed the price is one of the most important things one should consider from the supplier’s point of view. One has to practice negotiation to reduce prices from a supplier.

Reliability: it is important for the supplier you select to be reliable to grow trust with yours. Suppliers who provide a large number of products are more reliable from the small end ones.

Stability: When you select a supplier to ensure that, they are reputed to provide stability in the business. Some suppliers initially provide great stability and decrease with further trading.