If your company’s livelihood depends on getting your manufacturing materials consistently and on-time, your current suppliers may be putting your business at risk and you don’t even know it. Here’s 5 things you need to make sure you know about your material suppliers.
ARE THEY FINANCIALLY STRONG?
Make sure your supplier is able to assure you they can take care of you and not at risk of closing their doors. Companies that were financially strong 18-24 months ago could be in a much different position today. Make sure you are monitoring their business – so it doesn’t affect yours.
DO THEY HAVE A SECURE SUPPLY OF MATERIALS?
In the past few years, raw materials are harder to secure. Make sure the suppliers you partner with have the supply channels and clout to handle your needs now and in the future. Their raw material relationships are only becoming more critical in this economy.
DO THEY HAVE A GLOBAL FOOTPRINT?
As you expand into other countries, can your suppliers expand with you? A global footprint also helps to insure their materials can continue to be delivered to you, regardless of unforeseen situations – like natural disasters (like in Japan). In addition, it enables you to purchase the same components around the world. When expanding your global locations, this shortens the approval process, simplifies the supply chain and ensures consistent performance of your end products. Why not minimize risk and stick with what works.
DO THEY INVEST IN PROCESS IMPROVEMENTS?
Make sure your supplier is a partner in your business and is always investing in new ways to deliver better value to you. Make sure they employ modern methods for quality and continuous improvement.
ARE THEY EASY TO DO BUSINESS WITH?
You should never underestimate the importance of this! Make sure your not spending more time and money managing your suppliers than you should.
At Precision Products Group, Inc., we use these points to assure we are exceeding our clients expectations. If you would like to know more about how we can be a partner for you, please contact us at (800) 887-1475 or by email firstname.lastname@example.org.
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