Do you think it is so easy to choose a supplier?

[Altoros]

Hi,

Long ago during my school years I thought that what could be easier than just to bye something. But now I notice that to make decision to purchase anything is not an easy as it seems. Of course it's easy if you are not responsible for what you purchase. But nowasays we should do everything to grow our businesess. That is why our providers should have the best services (products) we can afford. When the market grows, new vendors appeares, everyone of us began to spend more and more time to make desision to choose and buy something.

How do you think is there anything we can do in order to cut down our expenses on the vendors research or short a choosing process?

Maybe anyone have appropriate experience?

Dmitry

[Altoros]

Just want to know what anyone of you based on choosing a supplier?

[KM-Tiger]

A few things I think are true:-

There is always a balance to be found between price and level of service.

Never, ever put all your eggs in one basket. Make all your suppliers aware at all times that they are competing for your business. Don't allow your business to become what salespersons call a "golden goose" account.

Spending a day to save a penny is foolish.

HTH

[fastfences]

Hi Dimitry,

When I first started I did the rounds of suppliers and evaluated their stock, prices and perceived level of service. Ironically, one company could not even offer me a materials price list! I think we soon know when we feel 'comfortable' with a certain supplier and that may sometimes mean we pay a little more for our product. If we can justify that to both ourself and the end user we are ahead!

I now continually re-evcaluate my suppliers - just in case I'm missing something.
Cheers, Nigel

[Altoros]

Thank you Guys, for your comments. But will you consider to use third party consultant services that will provide you a research of suppliers and let you know which one suits you the most for a long term period?

e.g. if it concerns software development (enterprise resource planning system, crm, etc.)

[DeveloperBloke]

hi there

i would never use third party companies uinless my comany wass turning over millions and millions

you know what you want, you know what you can afford, you know what companies you can find, call them, ask thier terms, state yours, if its not good, then move on

it would be a lot cheaper getting a temp in for a few weeks and telling them what criteria to negotiate on and to call comapnies, then to pay an expensive consultancy.

essentially, you have a business, if you think that you NEED a consultancy, then get one, but then think why do you need one?

j

[Altoros]

of course, there is no need to spend money on consultansy if you are not considering to purchase any serious service or product. But if you are going to spend e.g. 30K or more and will use the services or product during the next year or two?

Don't you think that it is more than reasonable to spend 500 - 1000 ($) in order to save days of research and then cut on spendings up to 20% by choosing right one provider?

I think I would have more serious things to do (marketing and sales) than just wasting a time of choosing a supplier. I would prefer to outsource that research to someone else. Don't you agree with me?

[fastfences]

I think I would have more serious things to do (marketing and sales) than just wasting a time of choosing a supplier. I would prefer to outsource that research to someone else. Don't you agree with me?

Nup. Don't agree. I don't see it as a 'waste of time.' To me it is highly productive because of the impact suppliers have upon our product, which, in turn, reflects the very essence of our business - customer satisfaction. Right product = happy customer, crap product = broke.

In my view, as soon as we 'outsource' we are opening the doors to 'mates deals' and 'money under the table for favours.' I much prefer to be in control.

Cheers, Nigel

[Altoros]

Ok, then is there any cases when you could consider using "suppliers" research by third party company?

[fastfences]

Would possibly consider if the source came as a referral through the trade, but the cost of the service would be a big factor. here's the Catch 22; the higher the credibility - the higher the cost!

Cheers, Nigel

[Altoros]

ok, then how much you can afford to spend on consulting when you are responsible to purchase 10k software and you will have a review of 10 best IT companies in your region according to required hourly rate?

[gapgb]

If you're buying 10k worth of software then I don't think you should be outsourcing the decision.

You're the one who's going to have to live with the outcome so unless you're buying in expertise that you really don't have, i don't see how you can outsource it?

Make up your list of what you need, look at the vendors and score them against your list and then maybe bring back the best 2. It's like choosing an employee.

Guy

[gapgb]

unless you meant 10K software in terms of US financial reporting in which case I completely mis-understood the question and apologise.

Hey I'm English and we don't use the term!

Guy