Are your current suppliers hindering your growth plans?
Posted on 23rd July 2018 at 12:24
When you first started your business you probably chose your suppliers because they provided the best possible products and service for a price you could afford. And if they did a good enough job you most likely stuck with them. But are they the right suppliers to keep long-term?
Will they enable you to grow your business or are they likely to cause a bottle neck for your future strategy?
Businesses who have been trading for a few years often find themselves in a bit of a dilemma. Their current suppliers just about manage to meet their requirements but already fall short of occasional higher demands. With a growth strategy in mind this can lead to more and more issues caused by the supplier.
It is therefore a good idea to examine the growth potential of all your suppliers on a regular basis.
Ask the following questions:
Are our suppliers able to provide larger quantities of products or increased service levels as our business grows?
if that is currently not the case, are our suppliers willing to invest to grow their business, so they can keep up with our growing demand?
Making the hard choices
If your suppliers are small businesses with a small business mentality they might not be able to stay your suppliers if you want to expand. Long standing business relationships that show no potential for growth will have to be severed for the benefit of your business growth.
As a business owner you need to focus on what your business needs and what you want to achieve. This often means that you have to take yourself out of your comfort zone by making hard strategic decisions such as leaving suppliers behind who have become friends over the years.
Looking to the future
If you are looking for faster delivery, more reliable service or simply a higher volume than current suppliers can provide, it is time to look to the market place for suppliers who will be able to help you achieve your business goals.
Change to new suppliers who are driven and want to grow with you. Look for more than just the lowest price. As a growing business you need consistent quality and reliability as anything else will reflect badly on your business and hinder your business growth.
Another important factor to look at is how many suppliers you want to buy the same products or services from. If you choose to have only one supplier as your demand grows, you could run into difficulties if they fail to deliver or even worse, go out of business. It might be a wise choice to have a number of suppliers who you buy from regularly. Also, if a supplier knows that you are relying on them only, this could mean they offer you a better service, but it could also lead to complacency and dropping standards on their part.
If you would like to talk to us about any difficult changes you need to make to help your business grow, please get in touch. We can offer the right skills, expertise and drive to help your company succeed and grow. You can call us on 0844 259 6210 or get in touch via our Contacts page.
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