Notesale: Turn your study into money

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3 approaches to identifying suppliers:

Wait & See
Attract & See

Seek & Find
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You must take the initiative to find the
best possible suppliers!
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2-1

Approaches to identifying suppliers
Write down five advantages of dealing with suppliers who were first to
contact you:

Write down five advantages of dealing with suppliers whom you were first
to contact,following an active search:

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3-1

Examples of screening criteria:
Acceptable:
Product range / minimum quality
Minimum / maximum quantities available
Delivery lead-times
Maximum acceptable price & payment conditions



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Overall reputation/ major problems
Business relationships with your competitors
Location & exporting experience
Type of company (manufacturer, wholesaler…)
Size
Use of e-commerce
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Language capabilities

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3-1

Screening suppliers
Which three of the screening criteria listed in the Coursebook are the most
relevant to your situation? Why?

Which three of the screening criteria listed in the Coursebook are the least
relevant to your situation? Why?

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4-1

What information can you
these sources?

find in

Name & full address, plant locations
Sector & products / services sold
Year of establishment
Ownership and type of company
Names of directors & managers
Capital & turnover
Number of employees

You can get more
information directly
from suppliers and
from their Websites,
and through Internet
search engines such as
www
...
com
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4-2

Where to get information for supplier
appraisal?
Published sources
Supplier questionnaires
Supplier visits
Supplier client references

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4-4

Published information (II)
Company financial & legal information
 Suppliers’ annual reports
 Credit rating services
 Legal databases on the Internet

Company technical & product information
BC

Lt
d
...


A

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 Suppliers’ brochures & manuals
 Consumers’ guides
 Databases on patent information (Internet)
 National standards / certification offices
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4-1

Searching for published information on a company
Take a company from abroad that you are considering as a potential supplier
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Contact the supplier to obtain its own published information
...

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4-1 (Cont’d)

Searching for published information on a company
Answer the following questions:
How useful was this published information?
Which were your main problems in obtaining this information?

Which additional information would you have needed to obtain?

Where do you think you can get it?

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The information you get
back from a supplier will
indicate its level of
motivation
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4-9

Preparing for a supplier visit/audit:
Provide an agenda in advance highlighting what to cover (in some cases, a
surprise visit may be useful)
Prepare a detailed questionnaire to use during the visit
Make sure that the people you want to meet are available
Make sure that all the people you need are part of your team
Brief your team on the objectives in advance & agree on who does what when
you arrive
Take your time during the visit and ask to see things not normally included in
the “tour” of the site (e
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purchasing dept
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4-10

When visiting / auditing suppliers:
Don’t focus too much on certain areas (e
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production) at the
expense of other areas
Don’t pretend to be a technical expert if you are not
Don’t allow the supplier to only show you what it wants
Don’t allow any member of your team to disclose commercial
information (e
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prices paid to other suppliers)
Don’t allow yourself to get distracted or waste time

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4-2

Supplier questionnaire
Take the supplier audit questionnaire given in Annex 1 and do one or both of
the following:
Use the questionnaire to collect information on your company as if it were a
supplier firm that you were researching
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4-2 (Cont’d)

Supplier questionnaire
Review carefully the results you obtain and answer the following questions:
How useful was the questionnaire?

Which were your main problems in using the questionnaire?

Which additional information would you have still needed to obtain?

Where do you think you can get it?

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4-14

Action Point

5
...
g
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Describe three situations where you think it would be justified to actually visit
one or more of a potential supplier’s customers, even if the customer were
located abroad
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4-15



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