Becoming a supplier for big companies is something that can drastically change the way you do business and increase profit. Of course, you need a strategy so you can reach those partners. For instance, you need to know how they choose suppliers and the way you can help them grow.
You also need to pay attention to competition and what they are doing to land contracts with big business, learn to approach those clients and have a well-established register process of new commercial partners.
In this article we’ll discuss more about the supplier activity and how to search for bigger contracts and partners.
What is a supplier?
A supplier is a business responsible for maintaining products or services for other companies. Among those can be offered raw materials, inputs or finished goods. But the range of action of a supplier goes beyond that, for example, suppliers deal with:
Basically, a supplier must provide sufficient material for commercial partners to continue their activities. Therefore, it’s necessary for a supplier to keep in mind what are the needs of the company they are relating to and even keep up with the end of the production.
That function is essential because that’s what allows production. So, without the supplier, companies won’t be able to deliver and sell their products. They won’t even be able to produce these products.
Responsibilities of a Supplier
So, considering that the supply activity is what supports the production of goods and therefore the delivery of products to customers and revenue. There are important aspects that must be fulfilled for a supplier.
Firstly, the delivery terms and conditions of products and services must be respected. That’s because the company must be able to contemplate customers’ demands. If the production is always late, it’s difficult to keep clients loyal.
Then, suppliers must be registered and functioning according to the legal norms of operation within the specific market or location. That will avoid problems for the supplier and for the companies that conduct business with them.
Finally, suppliers must offer products of good quality that stand out in the market, while matching prices that can result in profits for everyone involved.
How to be a Supplier
As we established, there are some points that are relevant for companies that seek supply for a specific product. For example, the price of the product compared to the market is a point always considered when making connections.
Also, the delivery time each supplier can offer. The faster and more precise, the more trustworthy for a company to be partners with that supplier. That happens because the supplier can guarantee that the product will always get there in time for production.
Another aspect highly considered is the payment method and procedures. If you can establish a contract, for example, or if you can offer discounts in bigger orders. That is advantageous for companies that need a lot of products in stock.
Finally, the overall quality of the service, including the aspects we discussed and even the personnel are fundamentally what will decide the contracts you will get.
Organizing the Operation
But you can’t become a supplier overnight. You need to study your scenario and the market you are insured and make a plan of business. That must be based on data and intel evaluations, ensuring that the process was trustworthy.
Basically, there is a few steps that can guide you through that planning, they are:
- Define a target audience.
- Prospect clients and partners.
- Build a portfolio of business.
- Be aware of compliance.
- Follow the trends.
Of course that’s a basic guideline of what needs to be done when trying to succeed in the suppliers market. You’ll need a lot more to grow and develop relationships with clients and bigger companies.
Looking for Big Companies
So, after you are already conducting business and have a couple of stable clients and a functional portfolio and history of success, it’s time to look for bigger contracts. But first, what do big companies look for in suppliers?
First of all, big companies define needs for products or services, defining an initial number of suppliers and requirements that must be covered for the selected suppliers. After that, they look for what’s available in the market and select a shortlist, evaluating aspects such as:
- Capabilities of the Supplier.
- Detailed Product Specs.
- Quality Certifications.
- Ownership and Diversity.
- Contact Information.
- Product Quality.
- Industries Served.
Then, suppliers will provide information for the companies and from there the selection wil lbe made. A well-established KPI system that tracks your efficiency and may be presented for companies that are looking for suppliers can help your case.
Finally, the best one will be selected, based on how they want to manage their operations, and from there, contracts and partnerships will be established.
Being a supplier is all about maintaining integrity and delivering goods at the expected time and quality. As you continuously conduct business your operations will grow and you’ll be able to handle more demanding conditions.
For that, it is always important to rely on data and try to optimize the functionalities of your activity. Finding good software and capable personnel are a good way to start to increase efficiency of your company.