Tips to Choose the Correct Supplier for Procurement

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Selecting the right supplier is an important task that needs to be considered properly. As a company, you need to make sure that your products and services are provided without delays, at the right price in accordance with the highest quality by the supplier. If you don’t have a clue in finding the right supplier, then these tips will benefit you.

1. Set your Criteria – There are certain criteria’s that goes behind making a list of potential suppliers. The criteria’s will ensure that your business not only grows but becomes one of the best. These are some of the criteria’s you need to consider.

  1. Payment terms and conditions.
  2. Time taken to delivery your product on receiving the order.
  3. Facilities for storing and handling.
  4. Minimum and maximum order quantities.
  5. Return Policy.

2. Define your Process – What methods you are going to use will help you find a supplier. Think about what source you are going to use in order to publish your requirements along with bids. Take help from members of the team to help you shortlist of suppliers.

3. Call for Bids – Whatever selection process you choose, you need to put out a call for bids. For instance; it can be (RFP) Request for Proposal or (RFQ) Request for Quotation. Regardless of the form you choose, you need to mention complete details related to the product and service you are going to need, along with delivery dates, quantities and quality standards. You must also ask from your potential bidder to provide you with information related to the type of process they use, and should you consider them over other potential suppliers.

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