When in search of a new supplier, it’s common to have certain basic questions in mind. With so many choices at hand, making a purchase decision often comes across as a daunting task, shaded by pre-existing relationships, risk aversion of trying something new, and budget and strategic limitations. Selecting a vendor blindly without a proper plan in place may run counter to your commitment to your organization’s objectives and mission. An investment in preparation and time will help you save you time and money and will prevent you from being scammed or having to switch vendors year after year. Helping you in this endeavor are companies such as Tazapay that conduct background checks for all types of businesses to ensure a more transparent trade.
Below-mentioned is a vendor due diligence questionnaire that will help partner with the right vendor.
Are you open to third-party testing?
Third-party testing provisions help flag any safety concerns. Finding a vendor that conforms to this is one of the best things that you can do to protect yourself. This ensures that the brand’s testing is unbiased and conforms to its claims about the products.
Can you share references with us?
Similar to a job interview, asking for references can help you make a better decision. It’s worth asking the names of similar clients that the vendor has worked for. Knowing about the experiences will help you make sure that the vendor is capable to fulfil your requirements and makes the vetting process easier.
What would you consider your biggest accomplishment and loss as a manufacturer?
It might appear an unusual ask but is an important one. Strong partners can easily offer insights into their potential and what they prioritize as a business. Their response can give you an idea of how the partnership will turn up and how it can be leveraged in the future.
Is your factory vertically integrated?
This means if the supplier’s business operates in more than one location. It’s common for factories to stay shut during government holidays and other occasions. Having a backup factory in a different location helps under such a scenario. Asking your vendor this question can help avoid unexpected roadblocks, slowed production, and establishes the fact that you are buying from a reputed supplier.
Do You Have A Minimum Order?
Most suppliers have a fixed minimum order. These minimum orders are set to ensure efficiency. Based on the industry your supplier serves in, it could be one pallet, one case, or one truckload. You need to know the minimum as a buyer to know if the supplier you have chosen is right for your type of business and to ensure that you order enough in the future.
Do You Have A Volume Discount? Where Are The Price Breaks?
Most reputed suppliers offer price breaks for orders in volume. This means that the more you buy, the more you end up saving. The vendors not just reward those who buy more but large orders also enable their warehouses to operate more efficiently which saves them money. Finding out price breaks will help you analyze if your orders can be re-arranged or consolidated for maximum advantage.
Consider vendor vetting as hiring for a senior position and must be as rigorous. It is important to exhibit respect and format throughout the supplier due diligence process. For a stronger partnership and happier outcome, consider seeking the help of brands such as Tazapay.