Sourcing the right suppliers is the lifeblood of any successful business. It ensures a steady flow of high-quality materials, keeps production humming, and ultimately fuels customer satisfaction. But for non-technical procurement professionals, finding the perfect partner can feel like navigating a maze blindfolded. If you've ever asked yourself how to choose new suppliers as a non-technical buyer, this guide is for you.
This post outlines tips and best practices for finding, evaluating, and managing your suppliers as a non-technical buyer based on the latest industry trends and standards.
Your choice of supplier has a profound impact on your entire operation. According to Deloitte, 79% of organizations with superior supply chain capabilities achieve significantly above-average revenue growth.
Reliable vendors delivering consistent quality materials on time contribute directly to cost reduction, efficient production, and happy customers.
The right suppliers can also:
Conversely, the wrong partner can disrupt your entire workflow with subpar products, missed deadlines, and unreliable communication. This goes to show why learning how to choose new suppliers effectively is not an expense, it's an investment for the future.
If you’re a procurement professional, odds are you come from a non-technical background and lack a degree in science or engineering. If that’s the case, you’re not alone.
According to Glassdoor and Global Performance, employers recruiting for procurement primarily seek degree-level education in business studies, management, marketing, operations management, and other business-focused careers. Technical skills don’t seem to be a priority.
The above presents a significant obstacle when evaluating potential suppliers, as your job hinges on ensuring they meet precise technical specifications – terminology that might make your eyes glaze over.
Imagine deciphering the intricacies of solar panel performance or the chemical composition of industrial adhesives without a scientific background.
This is the daily reality for countless procurement specialists.
If you don’t have a technical background but need to learn how to choose new suppliers, know that navigating the technical labyrinth is possible with the right approach. Here's a five-step roadmap to finding the perfect supplier:
Start by crafting a clear picture of your needs. What materials do you require? What are the exact technical specifications? This detailed understanding forms the foundation of your search.
There is no need to worry about this yet since this information comes directly from the production or R&D teams.
Utilize online directories, industry publications, and trade shows to identify potential vendors. Don't neglect offline resources like word-of-mouth recommendations from colleagues or industry associates.
Cast a wide net! Include all vendors who seem even remotely promising based on their product offerings and online presence. You will refine your list later.
This is where the nitty-gritty comes in. Scrutinize supplier specifications, datasheets, and product descriptions in search of the requirements production needs. If details are inadequate or confusing, don't hesitate to contact each vendor directly.
Remember, clear, concise communication is paramount. Don't be afraid to loop in your engineering team for technical clarification and support. Doing so is much better than purchasing ten million bolts and nuts from a Chinese supplier only to find out they don’t fit because their specs were in millimeters instead of inches.
This back-and-forth with suppliers and engineering is one of the most time-consuming and challenging steps of supplier discovery, especially if you’re not an engineer. However, it's crucial to ensure you're comparing apples to apples.
Once you have a short list of suppliers you know can deliver the right parts, you must research supplier reviews, check financial stability, and assess industry reputation. Look for certifications relevant to your needs, ensuring quality and regulatory compliance.
By now, you should have a workable shortlist of options. To finalize your decision, consider following these additional tips:
You know the suppliers in your shortlist all meet the technical requirements your organization needs, so the decision comes down to other relevant factors such as safety, quality, financial health, industry experience, scalability, and flexibility, among others.
Summarize this and any additional information in tables to make it easy to read and compare.
Evaluate each supplier based on your predetermined criteria and assign a score. You can use different supplier scoring models. You can also weight and normalize the scores to compare suppliers more consistently. This quantitative approach simplifies the final decision-making process.
At BabelusAI, we understand the challenges non-technical buyers face in the complex world of supplier discovery. Our innovative platform simplifies the process by translating technical specifications into readily understandable language.
Through AI-powered data analysis, machine learning, and a human-in-the-loop system, BabelusAI helps you assess and shortlist suppliers based on your specific technical requirements, saving you time, resources, and headaches.
Remember, learning how to choose new suppliers and finding the right partners for your business is an investment, not an expense. Contact us today to discuss how BabelusAI can help you overcome the technical hurdle as you navigate the world of supplier discovery, or schedule a call now to discuss developing a pilot for your company at no cost.
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