Partner Article

Will you be chopped or chosen? Part Two

The Preferred Supplier is a new business support initiative brought to you exclusively on Bdaily by Malcolm Gallagher of BizVision and his expert partners. Over the coming months you’ll gain from a growing collection of incisive articles here on Bdaily and other support activity to help you become and stay The Preferred Supplier.

Recently, here on Bdaily, in part One of Chopped or Chosen I gave you the first two of a 10 item checklist on buyers’ criteria when selecting a supplier.

The idea is that you can see it from THEIR point of view rather than yours and gain a vital winning insight to become The Preferred Supplier.

Here in part 2, let me ask you to think about the next four of the 10 criteria. As before, give yourself a red, amber or green score as you think about the item. The four criteria in this issue are Consistency, Compliance, Finance and Fit.

Consistency

If you are a quality supplier you will be focused on ensuring you provide your product or service in exactly the right manner to the right high standard, every time - or at least the greater majority of the time!

The buyer will be looking for reassurance from you that you have the right facilities and technology to provide accurate and consistent goods and services.

You need to show your consistent processes and materials being used to produce your product or service.

The buyer will be watching for if you are frequently asking for concessions or if you have to go back and fix mistakes or errors on a regular basis. Your ability to serve as a quality supplier is then likely to be questioned.

A way to give confidence in this area is to have the right qualifications, such as ISO, which helps show your commitment to consistency and quality.

Compliance

We address this wide and varied element at The Preferred Supplier using with our exclusive balanced scorecard programme as a measurement. But let me give you some thoughts about areas to consider. Quite rightly a buyer wants to do business with a reputable and safe supplier, but the need goes way beyond that especially in how you are evidential.

For example, you know your company should be environmentally friendly and safe. But the need is to go beyond the essential government regulations into making strenuous efforts in both having environmental policies and truly living them.

You should also be concerned about providing a safe environment for your people. The buyer is likely to ask you to supply accident statistics, evidence of regular safety inspections, and any safety awards that have been given to your company.

Finances

This can be a challenge for young businesses, but buyers want to see that you have a strong financial situation and will look at your financial statements. This is basically to ensure that your company will be able to complete the project and remain in business for future contracts.

They will be looking for any indication of financial distress so make sure you are able to give comfort and avoid any phrases in your statements that invite doubt. At The Preferred Supplier we know this is a vital area for you but there are many different approaches you can take.

Fit

This is where culture and relationships play their part. Are you a good fit for not just the buyer’s company but also to work with others in their supply chain?

Do know how you are able to match the requirements of the contract? Sometimes this requires a certain level of cultural understanding. Make sure you know and understand exactly what your customer is seeking from their contract and show how you are a good fit to meet those requirements.

The buyers wants assurance that you will be able to work within their cultural barriers. This means, for example, compatibility with their internal processes and bureaucracy, any national or country restrictions, and any government regulations on health and safety. Don’t ignore the importance of being seen as a supplier who is a good “fit”.

Do remember this is all about supplier selection criteria and being the preferred supplier. It is not totally about winning the contract! In the third and final part we’ll look at the final 4 criteria in supplier selection. Meanwhile have you any thoughts on the above? Am I missing something in any of these four elements?

This was posted in Bdaily's Members' News section by The Preferred Supplier .