Suppliers are key to ensuring smooth and efficient business operations. In today’s fast-paced and competitive world, choosing the right supplier is crucial not only for maintaining product quality but also for ensuring business continuity.
Therefore, a thorough understanding of what a supplier is and how to choose the best one is crucial for every business owner, especially those in the MSME sector.
This article will give you a complete guide to understanding and choosing the ideal supplier.
What is a Supplier?
A supplier is a key entity that provides goods or services needed by another company to operate, produce, or sell the final product to consumers.
Suppliers are not just suppliers, but also strategic partners who have an influence in determining the quality of the final product and customer satisfaction.
Suppliers play a vital role in ensuring a steady flow of quality raw materials. They also act as gatekeepers of quality, ensuring every component supplied meets established standards.
In this context, good cooperation with suppliers is very important because it can reduce the risk of delays and increase operational efficiency.
In many cases, suppliers bring insights that can help your company develop better products or find more efficient and cost-effective solutions.
Supplier Roles and Duties
Before we delve further, let’s understand the typical duties of a supplier. Here’s a list of those duties:
- Provide goods or services
- Organize logistics and distribution
- Maintain the quality of products provided
- Manage inventory
- Offer competitive prices
- Ensure sustainable supply of products
- Provide customer service
- Manage risk and ensure regulatory compliance
2 Supplier Type
Now that we understand that suppliers are product suppliers and play an important role in business, let’s delve further into the types that you can find in the market.
Understanding the difference between a supplier of goods and a supplier of services will help you make a more informed decision in choosing a partner that suits the specific needs of your business.
1. Goods Supplier
Goods suppliers are those who focus on providing the physical products that companies need. From raw materials, components, to finished products, goods suppliers ensure that all these materials are available according to business needs.
In partnership with them, stability of supply and product quality are two aspects that are highly prioritized. Goods suppliers are also often involved in product innovation to help their business partners stay competitive in the market.
One example of a common supplier of goods is a company that provides raw materials to the food and beverage industry. For example, a company that provides flour or preservatives to bread and cake manufacturers.
2. Service Supplier
On the other hand, service suppliers offer the expertise needed to support business operations. The services provided can be as diverse as IT security, human resource management, or cleaning services.
These service suppliers are important because they help ensure that all aspects of a company’s operations run smoothly and efficiently.
In working with service suppliers, the main focus is on service reliability and adaptability to changing business needs.
Examples of service suppliers can vary greatly depending on the industry sector. In the technology sector, service suppliers can include companies that provide IT solutions and system maintenance, such as cloud hosting or cybersecurity providers.
In the context of daily business, cleaning and facility management services are also examples of service suppliers that are crucial to maintaining a clean and safe work environment.
6 Ways to Choose the Right Supplier
Choosing the right supplier is both an art and a science. This decision can determine the success or failure of your business operations. Here are some detailed and practical steps to choosing the ideal supplier:
1. Customize to Business Needs
The first step in choosing a supplier is to clearly understand what you need from them. Is it uncompromising quality, speed of delivery, or perhaps flexibility in orders? Having a clear picture will help you filter out unsuitable suppliers early.
2. Reputation and Reliability Evaluation
Before making a choice, do in-depth research on the supplier’s reputation. Read reviews, case studies, and testimonials from other businesses that have worked with them. Good suppliers are those who consistently meet expectations and are committed to customer satisfaction.
3. Price and Condition Analysis
While price is not the only factor, price and condition analysis is important. Get quotations from several suppliers and compare them. Be sure to also check the accompanying terms and conditions such as minimum payments, credit options and potential discounts for large purchases.
4. Check Capacity and Resources
A good supplier should be able to meet your current and future demands. Make sure they have enough production capacity and resources for scalability. Visit their production facility if possible, to see first-hand how they operate their business.
5. Customer Service Test
Responsive and helpful customer service is an important indicator of a good supplier. Before making a decision, try communicating with their customer service team to see how quickly and effectively they respond to questions or concerns.
6. Consider Location
The location of the supplier can affect logistics and shipping costs. Local suppliers may offer faster delivery times and lower costs. However, international suppliers may have access to more unique or cheaper resources. Consider these factors based on your business priorities.
Suppliers are the foundation that determines the success of your business. Choosing the right partner is not just about price, but also about quality and reliability.
Together with Labamu, you can manage your business raw materials in more detail and thoroughly. And ensure that every component you need is always available at any time.
Don’t let the opportunity to optimize your business pass you by. Visit your Lab page and download the Labamu app app today. With a subscription fee of only Rp 116 thousand per month, all the advanced features can help you organize every important detail in your business.
