Are you planning to start an industrial establishment? The first thing to focus on should be supplies. Indeed, this should be part of your initial strategic assessment even before installing the facility. For example, a business dealing with pipes, electric cables, or precious metal should first establish the sources of raw materials. If you are assured of a constant supply of raw materials by a committed supplier as indicated here, rest assured that production can continue sustainably. This post outlines the main questions to ask suppliers before entering into a contract:
What are Your Selling Points?
When you ask suppliers this question, the goal is to understand how they operate and what makes them different from others. Aim at knowing the driving force that makes a specific supplier the better option. Note that the focus is not just about money, but ensuring to select a supplier who is reliable and speedy. For example, a cheap but unreliable supplier can result in huge losses.
How Financially Secure is Your Company?
In industrial production, it is advisable to work with players who are financially stable to be sure they can operate reliably. This means having the right infrastructure, staff, and funds to make the supplies when needed. Being financially stable also means that the supplier will not get out of business when raw materials are needed.
What about the Past Clients’ Feedback?
One way of identifying a good industrial supplier is looking at past clients. The supplier should be willing to share and discuss why past clients were content or not satisfied with the supplies. If the past clients can recommend the supplier, do not hesitate to go ahead and use his services.
Can We Grow Together?
One unique indicator that points at a great supplier is the commitment to grow together. If you pick a good supplier the focus shifts from simply optimizing sales to helping each other to grow. This question is very important because it helps the supplier to point at areas of cooperation that can allow both businesses to operate profitably.
Do you Use Service Agreements?
Service level agreements are contracts that suppliers sign to commit to high-quality service. They indicate that the supplier is committed to delivering quality materials or products on time. Here are some of the components of the agreements:
Nature of supply provides.
Responsibility of supplier and client.
If you are opening an industrial establishment, make sure to get a reliable supplier by asking the above questions. A great industrial production starts with reliable supplies.