When we talk about suppliers in this blog, we mean any company or person who can supply you with products – from manufacturers and wholesalers to distributors. There is a lot of good information to be found by Googling but before you start it is important to have already thought about the following:
The most important thing is to determine what kind of supplier you actually need so that you know what words to use when searching. Most suppliers fall into the following categories:
- A manufacturer who can create your product idea.
- A supplier (who can also be a manufacturer), wholesaler, or distributor from whom you buy existing brands and products
- A drop shipper who already has existing products in-house and sends them for you.
When looking for manufacturers or wholesalers, it is important to decide whether you want to get your products from nearby or far away. You can also check Horeca Food Supply Companies Application.
Generally, most of the suppliers are located in Asia, in countries such as China, Taiwan, and India. Sellers often choose these countries because the products are cheaper there. But lower unit prices and lower investment costs do not always outweigh the disadvantages of foreign suppliers.
Importance of supplier management
The importance of supplier management is related to the influence of the supplier on the quality of housing, the importance of innovation and the risks in the event of supplier default. The greater the influence of the supplier, the greater the importance of supplier management.
The practical example works successfully with core suppliers and reduces total cost of ownership from the guideline illustrates the importance of good supplier management.
Cheap is expensive
An analysis shows that the lifespan costs (total cost of ownership) of elevators had risen sharply. The one-sided view of purely the purchase price was the cause. Afterwards it turned out that the quality was less suitable for the environment and its users. The result was very high maintenance costs and tenant satisfaction plummeted due to the large number of faults.
Influence at the front
The contracted quality, increasing vandalism, maintenance problems and the greatly increased lifespan costs of the lifts have been discussed both internally and with the core suppliers. The solution turned out to be the development of a standard corporate elevator, with universal components that are freely available on the market (available to all suppliers). Quality and price have been influenced at the front.
Chain collaboration, both internally and externally, turned out to be a critical success factor in this new way of working with core suppliers. The supply chain is jointly responsible for the entire process and end result: elevator building, maintenance, repair, replacement and warranty.
This led to, among other things, the following concrete benefits:
- Lower lifetime costs.
- Longer contracts have been concluded with suppliers.
- Suppliers are now partners to develop a good lift with the aim of little or no breakdowns.
- Better quality and working conditions.
- Fast and easy communication
- Easier to find out how good a supplier is.
- Faster shipping.
- Better intellectual property protection.
- Greater payment security and better protection by law