Why you need to keep developing new suppliers?

By justchinait
December 24, 2020

The so-called, shop around. But no matter how the buyer compares, it is “smart to sell than to buy”. For this embarrassment, there must be an alternative supplier. 2-3 alternative suppliers are the best. The backup is that you still have a cooperating supplier, but you have to ensure that there is at least a supplier that can be used as before one. If there is a problem with the cooperating supplier, directly cooperate with the alternate supplier directly, and there will be no or little impact on production.


Buyer Andy hurried over and asked the salesman Linda, the containers for the 40GP Christmas gift are all booked? Whether you receive the SO?

L: What’s wrong? All have been ordered and the delivery time is a week later, don’t tell me that the goods can’t be shipped

A: There is something wrong with the factory. Due to our large order volume, the factory has been rushing work day and night. Two machines failed and were not repaired. Time was delayed, delivery had to be delayed for 15 days

L: Are you kidding me, I have always emphasized that the goods are for Christmas promotion. If we miss this time, the customers will not be able to sell the goods. Moreover, if we postpone it for 15 days, it will be delayed by one to two months for customers to receive the goods. This will never work!

A: I went to the factory to see the condition today. The machine was indeed broken, and the factory sincerely apologized. . . . .

L: If an apology is useful, what is the use of money? This matter can’t be solved with money, and customers have always emphasized that they can’t miss the Christmas sales season. How do you ask me to explain to customers? You hurry to find a backup plan and find another manufacturer to produce

However, Andy does not have an alternative manufacturer, and it is too late to find another manufacturer when the delivery date is approaching.

The follow-up of this order: After many efforts of each party, the delivery date is still missed. The company can only ship part of the products by air freight.

The high cost of air transportation was borne by the supplier, but the supplier did not agree, leading to a breakdown in the relationship and the loss of the only supplier.

Through such a small case, we understand the importance of backup suppliers.

Dealing with suppliers is the most time-consuming and energy-consuming thing, because, in production, suppliers always have many unexpected problems, which will scare you from time to time. If there is only one supplier for a product at this time, you are very passive.

Disadvantages of not having a backup supplier:

1. There is only one supplier, most of the time you have to accept what the supplier says. Customers themselves are always passive

2. There is only one supplier, and the price is definitely not the most reasonable and most favorable. There is no room for bargaining, and the supplier will gradually control the pricing power. What follows is that the delivery service is not good, and the supplier’s lack of pressure leads to limited improvement.

3. There is only one supplier, once a problem occurs, there is no way to find a supplier to remedy it in a short time.

The benefits of having a backup supplier:

1. The initiative is in your hands, you can choose what you are satisfied with to cooperate.

2. The purchase volume is relatively large, which is conducive to price comparison and negotiation

3. You can use alternate suppliers to balance and restrict the rights and interests of both parties. More importantly, if there is a problem, someone can replace it at any time.

4. If you have a large order, you can divide the order into several parts to purchase, shorten the transaction time.

Don’t put eggs in a basket!

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