Why is the selection of suppliers important?

Someone who has a commercial business knows that he has to find a supplier, no
matter his position in the supply chain; this selection is not always easy and fast
and, when that is the case, this causes severe damages in terms of loss and
Someone who has a business is usually focused on analyzing clients and competitors
while inclined to neglect a crucial aspect of the supply chain: the analysis and the selection
The supply chain is the distribution channel, that is the complex mechanism that includes
logistics and business organization that is also the material flow system that transforms
input into output.
Regardless of the business typology you have, you will almost certainly request goods and
services that are part of the supply agreement or, more correctly, staff-leasing.
Staff-leasing, under Italian law, is the contract by which a party is obliged to provide to
another party goods or services periodically against remuneration. Therefore, the suppliers
will be the ones that deliver goods to a restaurant or the ones that provide electric power
to a building or the ones that provide raw materials to a cosmetics factory.
Regardless of the type of company, in the majority of cases, everybody has to deal with
suppliers because, more complex the output, less the operating autonomy.
Therefore, selecting one supplier rather than another one, will impact the quality of
the good or service that you offer to your customers as an entrepreneur.
If you are selecting your providers just in accordance with criteria of easy analysis – as
such as cost, personal acquaintances, supplier fame – you are taking a high risk within
your company.
A correct management of the supply and distribution chains protects against risks
and brings a competitive advantage.
By correct management we are referring, of course, to the in-depth analysis and the
careful selection of the subjects that will periodically provide you with goods and
A wrong supplier damages the reputation and quality of your product or your service in
the eyes of customers.
Customers are not interested in knowing the reason of the shipping delay or the damage
to the packaging or the different taste of the food you sell.

Clients are not interested, as it should be, in which link of the chain the error
occurred, they buy goods or services from you, and they address every concern about
their supply to you.

Determine what is a good supplier for you
The main criteria to choose a good supplier is, of course, to determine what is a good
supplier for you.
Answer these simple questions to depict your idea of the best supplier:
 Which quality you expect your supplier to have?
 What cost are you willing to pay to get that quality?
 How fast do you want your supplier to deliver? Does he need to respect
 How you would like to manage the relationship with your supplier?
 Would you prefer a supplier from your own country or are you willing to have
your supplies from abroad? Would you succeed in managing a professional
relationship if he would speak a different language?

To answer these questions (and others) in advance allow you to determine the type of
supplier you ask for.
Understanding your needs allows to easily get what you want, because you can reject who
does not comply with your standards. Making this choice, drastically reduce the
likelihood to be unsatisfied and to disappoint your clients’ expectations.
It is clear at this point how the cost is just a minor factor in determining a good supplier.
In the business game fight is always about beating the costs, but it cannot be your
only weapon to win the war of gain.

How do you know which supplier offer the quality you want?
Finally we arrived to the seemingly most painful point.
Now you know what you want, you do not really know your suppliers though and you do
not have elements to choose, a part from the reputation they have.
Finding out the reputation of your potential suppliers is already a good starting point as a
first screening. Always keep in mind that reputation is the voice of someone else’s
The analysis of the suppliers is a process that requires time, analysis skills,
exchange of experiences, field examination.

If you want to offer the best product (or service) to your customers, you have to check
that no actor in your distribution chain compromise your work and in order to do
this you have to start from your suppliers.
Decide the quality that you expect from your providers and we will cover the rest.
Our group has half a century worth of experience in inquiries and survey activities.
We also are consultants for companies and professionals, because the best advice
comes from who can obtain all the information and knows how to interpret data to
answer to your customer questions/needs.
No information, no informed choice. We offer inquiries that allow you to take
informed choices.
With the SUPPLIER ANALYSIS service we offer advice in determining which supplier is
the more reliable, considering your requirements and objective needs. By contacting us,
you can protect your company from the damage a bad supplier can cause in terms of
unsatisfied customers, company reputation and, in the end, loss of earnings.
Call now our toll-free number or fill the form below for a free, not-binding consultation. One
of our operators will contact you soon or when it is best for you.


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