Do Your Vendors and Suppliers have a Large Capacity?
Time, Quality or Cost?
It's said that you can't have it all. Your company needs to pick the two sides of the Project Management Triangle that are most important and aim your focus there. This narrow-minded thinking needs to change; you can have it all, and it starts with your vendors and suppliers.
It happens more than we like to admit it; the job is hot and we need the product shipped and in our hands as soon as possible. In order to get the job done on-time, costs for production and shipping rise and profit yields end up lower than expected. When trying to balance time, quality and cost it is critical to get your suppliers and vendors involved.
When surveying potential companies to partner with, two of the most important questions you should ask are:
1. Does your vendor/supplier hold customer product?
2. Does your vendor/supplier order in bulk?
Why Inventory Availability Matters
If your vendor or supplier has the ability to meet your immediate and future needs due to a large capacity, this will allow your company to expedite parts and decrease cost and inventory requirements. Not to mention, you can save money on expensive software and hiring needs if you have other companies maintain your parts inventory. With less product in-house, your floor may be less crowded and cleaner eliminating overload.
Why Ordering in Bulk Matters
Bulk purchasing is a strategy used to increase the maximum amount of dollar savings for an organization but the benefits don't stop there. Bulk purchases also minimize the number of hours employee wait before production can begin and can decrease shipping costs. Another key benefit to bulk ordering is the ability for your company to get jobs done on-time or ahead of time. The option of having materials available the moment you need it, rather 1 to 4 weeks later, will drastically impact your turn-around. Buying in bulk can build a positive reputation for your business with little effort.
How to Source Vendors and Suppliers
Ray Carter's 10 C's of Supplier Evaluation are a great tool for identifying whether your company's needs are being met:
Carter's model can be used to help you evaluate the competency and viability of potential vendors and suppliers. This, in turn, can help you choose the company that best meets your needs and aligns with your organization's values.