It would be nice if business success happened in a vacuum — strictly as a result of one’s intuition, planning and acumen. Unfortunately, that’s not the case. Even the smallest small businesses rely on manufacturers, suppliers and partners that add value and provide essential services and supplies.
We chose the following tips while understanding that business owners sometimes need a helping hand with knowing where to look for suppliers and manufacturers.
1. Thin the Herd Using Trade Publications
It’s wise to take advertisements in any medium with a grain of salt. Interestingly, as companies pour more of their ad dollars into online advertisements and branded channels, trust in magazines and other printed publications remains steady.
In a Nielsen survey, 56% of global respondents said they “completely” or “somewhat” trust magazine ads. Only television and newspaper ads ranked higher. Other surveys say as many as 82% of U.S. customers trust printed advertisements.
Some trade publications have moved their services online and eliminated or reduced the cost of listing a business. On the other hand, printed trade publications charge a fee for advertisements, which can cut through some of the noise from low-quality, fly-by-night suppliers.
Choosing a manufacturer or supplier from a magazine shouldn’t be the last step you take. But it does give you a broad sense of each company’s “marquee features.” Which elements of their business do they make a point of calling attention to, given that advertising space comes at a premium in print?
2. Attend Trade Shows
There are few substitutes for meeting one-on-one with a potential partner. First impressions aren’t everything, but they provide a good sense of the other party’s personality and their willingness to listen. According to Business Expo Center, more than half of all trade show attendees report traveling 400 miles or more to attend trade shows.
That might seem like a long way to go, but consider the alternative. Comparison-shopping online and soliciting faceless quotes is a charmless and sometimes futile experience. Trade shows provide a way to judge the enthusiasm of your future partners and see firsthand how they differentiate themselves from the competition.
3. Outsource Your Supplier Relationship Management
When it comes to finding reputable vendors and manufacturers, one point is easy to overlook. Decision-makers aren’t necessarily procurement experts, and they don’t necessarily have the backgrounds to make informed choices. This area is where corners get cut in the name of cost savings.
But there’s more to adding value to a supply chain than offering the lowest price. It makes financial sense for many companies to turn over the procurement process — and the task of vetting potential business partners — to a supplier relationship management firm.
For many organizations, this decision saves money in the long run compared to building an in-house procurement team. And it can most certainly save time you’d otherwise spend curating a list of industry contacts and doing the research yourself. Simply put, procurement and sourcing are not why you got into the business. Stay mission-focused with third-party help.
4. Evaluate the Company’s Culture
It took a while for the business world to catch on, but “culture-based” marketing is now very much an essential part of online branding. Company websites, when done well, provide a treasure trove of information for potential partners who know what they’re looking for. Here’s a sample:
- Look for executives and other key personnel who have been with the firm for several years. This kind of longevity is a good sign of a healthy culture and a stable company.
- Does the company go out of its way to highlight its employees? Do the employees seem glad to work there? Has the business earned any workplace awards?
- Do you see commitments to green initiatives and other pro-social causes? Are they ahead of emerging regulations or already falling behind?
- Does the business have testimonials? Anonymous “quotes” from “customers” are red flags. Video testimonials can be highly useful because they’re personal. The subject must be willing to put their word (and face) on the line to make the endorsement.
5. Learn What Their Website Says About the User Experience
The bar for digital excellence keeps getting higher. First, companies needed a website — then an app. Then, they needed a responsive website and a presence on major maps platforms.
Humans perform so many actions online now that it’s hard to take a company seriously if they don’t eliminate digital pain points. User experience on websites speaks to the quality — or lack thereof — of the larger experience you’re in for when you contract with a business. Ask yourself:
- Is the website ordered, logical and easy to use? If it looks pretty but offers poor usability, it speaks of questionable priorities and a lack of understanding of how modern customers interact with business partners.
- How easy is it to get in touch with the company? If you’ve made contact, how long did it take for them to get back to you? Who picks up the phone when you call?
- Do they offer mobile tools? Can you re-order products from anywhere? How easy is it to seek troubleshooting help during your peak operational hours?
- Are their prices and rates communicated clearly? Is there any critical information missing?
6. Find Out How Susceptible They Are to Geopolitical Upheavals
The ongoing trade wars between the U.S. and its rivals and allies have thrown a wrench into global supply chains. If your company finds itself needing a new manufacturer or supplier, this is an ideal time to insulate yourself against future difficulties of this nature.
Historically, the advantages of overseas suppliers and manufacturing firms included lower prices and greater choice. Today, this isn’t so clear-cut. Domestic sourcing is popular again today in the U.S. for a few clear reasons:
- There are no language barriers.
- Domestic suppliers may provide a higher “perceived quality” for your end-user.
- Keeping supply chains within borders provides some insulation against tariffs and economic protectionism.
- You’ll get generally faster shipping times and turnarounds.
Domestic sourcing may carry a higher price tag — but what you get in return may more than make up the difference.
Set Your Expectations Ahead of Time
If there’s one point that ties all of this together, it’s to set your expectations in advance. You have standards for quality assurance, and you know the lead times you require. You know how much you’re willing to spend, too.
Once you’ve found a suitable partner, hold them to these standards. Monitor their performance and gauge their follow-through. If you’ve chosen well, they’ll be just as eager to maintain productive and stable business ties as you are.