Knowing Your Supplier and Your Direction of Distribution
Posted on January 21, 2015 by Christina Bergeron, One of Thousands of Entrepreneurship Coaches on Noomii.
A worksheet for clients who are unsure where to start with the supply & distribution aspect of their business. Provides starter questions for thought.
Knowing Your Supplier and Your Direction of Distribution
Finding the right supplier and direction of distribution can be daunting. Since supply and distribution can take up a large part of your costs depending on your businesses needs, it’s important to take the time to ask questions and compare options. Below are some points to consider and questions to help you get started. Take what you think will help you grow, leave what may be redundant for you, but don’t leave anything behind that may challenge you from a different angle. Work at your own pace and enjoy exploring the possibilities for professional growth. Remember to note any questions or thoughts that may come up and share them at our next session.
A Long List to Ponder When Conducting Supplier Research…
What do other businesses in the field generally need from suppliers?
What is your inventory?
What are the materials and parts you use to make your product?
What are the ongoing services you need for your business to operate?
Who is selling what you need?
Are you using one supplier or many? If one, keep informed of others just in case you need them.
What are the pros and cons of dealing with the supplier(s) you’ve chosen on a regular basis?
Does the supplier have a full selection of products you need?
How competitive are the suppliers prices?
Does the supplier offer any specials?
Do larger orders receive discounts?
How reliable is the supplier and what is their reputation?
What is the supplier’s delivery time from the date an order is received until the date it’s shipped?
How are the goods shipped?
Who pays for shipping?
Will you be able to return or exchange defective, damaged non-selling or overstocked merchandise? Will you have to pay a restocking charge?
Does the supplier provide advice or required training on purchased equipment?
Is there any advertising support?
Does the supplier extend credit?
Can you have the names of customers to contact as a reference?
Do suppliers have a lot of influence when it comes to setting terms in your industry?
Who will be your company representative?
Taking Care of Yourself as the Supplier’s Customer:
Ask to be informed about new products, discounts, rebates or special deals
Ask to be advised of any possible delays in delivery before they happen
Ask for assistance if you occasionally need extra inventory or immediate delivery
Ask for flexibility if you have an occasional problem paying a bill on time
Ask for a contract to be set in place
Which Direction of Distribution Will You Take:
i) Direct Distribution: Product or service goes from your business to your buyer
ii) Indirect Distribution: Product or service goes from your business to another business to the buyer.The target market is the buyer but your customer is the middleman business.
