How to Be a Preferred Supplier
With the increased pace of the world, the competition in market has become very stringent. No matter what industry you operate in, the need to provide quality and cost effective products to customers has become the first priority. Nowadays, buyers are looking for suppliers who are more flexible, offer products at cheaper rates, follow the delivery schedule and in some cases assist buyers in new product development.
The needs of a buyer can vary from industry to industry; therefore it is important that you have firm grip in your relevant field. If you have adequate experience of your industry, then you will face little problems in becoming a preferred supplier. Nevertheless, if you have recently entered the field or about to enter the industry, you can face a lot of troubles in a bid to prove your mettle against the veteran suppliers.
It does not matter what is your industry, buyers have always maintained a list of their ideal suppliers and if you want to improve your position or enter the list, you will be required to make some amendments in your terms and processes. To keep up with the pace, you must provide the buyer something extraordinary and gain a competitive edge over other suppliers because if you are not offering something new, it is unlikely that you will get buyer’s attention.
Instructions
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The foremost thing that any buyer prefers is the cost efficiency. In most cases, the purchases of raw material constitutes up to the 50 percent of the total cost of the product while in some cases it can be seen up to 75 or 100 percent. Therefore, the main interest of the buyer is to lower his costs and by providing cost effective products, you can help the buyer achieve his ultimate goal.
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Remember, going cost effective does not mean that you can compromise on the quality. A buyer will never consider a supplier who has variations in quality but will prefer the supplier who considers cost effectiveness and quality of equal importance.
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Most of the buyers offer incentives to the suppliers who abide by the delivery schedule. As their business can get stuck due to the delayed deliveries, you should always deliver on time.
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Helping the buyer to reduce his lead time is also an effective way of becoming a preferred supplier. This can be achieved by sharing information and increasing the use of technology.
