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How to Know if Your Suppliers and Shippers Are Doing a Good Job

smallbusA major factor in the health and profitability of your business is your relationship with the suppliers and vendors that will be supplying you and your customers with products and services. These days when competition is so intense, and time is critical, it's a bigger factor than ever before to have a handle on the vendors and suppliers who work with you. You absolutely need systems in place that not only allow you to determine whether or not a particular vendor may be right for you, but also keep your business properly protected. This goes for online businesses as well, particularly if you are outsourcing services.

Evaluating your vendors or suppliers right from the start!

Taking the time to research a potential vendors resume is best done at the start, to help you avoid as many problems as possible. Know the answers to questions like these:

  • How long have you been in business?
  • Who are some of your customers?
  • How many employees?
  • How busy are you?
  • How focused on my company will you be?
  • Who will I be working with?
  • What happens when there's an emergency?
  • How do I know you'll come through when I need you?

Put accountability systems in place

Making sure all parties are doing their part is essential in a relationship that uses vendors and suppliers. Additionally, it must be a good arrangement for all concerned. Set performance standards early on as to what is expected, and adhere rigorously to them. Don't let weak performance go without challenge. Make sure that the vendor or suppliers you choose have a solid management style in use. You really want someone there attending to your business for you!

Don't hesitate to move on!

If it all goes south, and it does in some cases, don't be reluctant to move on to another vendor or supplier. Let them have the opportunity to correct things with a formal notice, but if it doesn't get fixed, move on. You can't afford not to!