Business owners won’t give credit to new customers without checking into their finances and seeing how on-top of their bills they are. A vendor who fails to deliver the goods or services you need to satisfy your own clients can be just as detrimental to your business as a customer who fails to pay you.
It’s crucial to vet suppliers to ensure that they’re able to fulfil the necessary requirements. Overlook the vetting process is a common problem when new suppliers need to be on-boarded quickly.
Here are some tips to help you vet a supplier:
Define what you need from a supplier – Make your expectations clear on what you expect from the supplier.
Check for references – Don’t be afraid to ask to speak to one of the suppliers current clients and find out how they find working with the supplier.
Find out how the supplier can add value to your business– Establish how working with this supplier can add value to your business. For example are they able to offer you a competitively priced service?
Assess your suppliers’ efficacy – Make a judgment on whether your supplier can meet your needs for the short term and the long term.
Get a clear idea of the cost – Discuss the costs involved with your supplier. You need to make sure that they are being transparent with all of their costings.
One of the greatest unknowns for any company in today’s times is the financial well being of their vendor. Most companies assume that their vendor companies have remained financially stable but in the current time of our economy many circumstances have changed for many vendors and typically this is only discovered when the vendor fails to perform.
Should you need assistance with vetting a supplier get in-touch with Uphando