The quality of your suppliers will have a major impact on the quality and margin of the products and services you will deliver. Additionally you want to find marque suppliers to use as part of your brand association. Life cycle costs: defects requiring rework, defects requiring return, warranty or guarantees, durability. Also consider payment terms.
Given a contracting economy with diminishing business opportunities and inflation devaluing the currency, can you identify and build a relationship with suppliers where both parties will prosper from the alliance.
EPISODE 45: Summary
The place to start is to compute all associated costs for buying, using, servicing the input and add to the initial price. Did you pick the right supplier? Use this metric to evaluate current relationships and it provides a model to interview and evaluate future suppliers.
EPISODE 46: Why Are The Right Suppliers Critical
The place to start is internally. You are building an organization based on a vision of the future, a mission statement on what value you provide to whom, and finally a set of operating principles that defines what is in or out of bounds; a set of ethics on how to achieve goals and objectives.
This is your internal branding. Now the focus shifts outward and turn who are internally to who customers will experience in terms of quality, service, and value at price.
EPISODE 47: What Do You Look For In A Supplier
Well, it should be obvious what to look for in suppliers - shared internal and external branding. Whether you are a startup without much market awareness or a major player with a long track record, who you associate with matters. You can't have your brand associated with organizations that will spoil or destroy yor brand.
Once you assess their products and services fit what you need, the preliminaries are done. It is time to do the heavy lifting of finding what they are about. Are they as dedicated to make the relationship as you are?
EPISODE 48: How To Build The Right Relationship
If your assessment of the supplier is they are the right choice, now its time to start the investment. Your goal is to make their offer a competitive advantage for your organization AND a competitive advantage for your alliance partner.
Are you up to the task?
Next Show/Chapter 14: Company's Value Added
How to apply today's show to your business:
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