Steps to finding a new supplier

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Your Supplier Search

Have you assessed your procurement needs and decided to search for a new supplier?

In this guide we outline key steps for procuring a domestic supplier – for reference, we list “domestic” as U.S., although this list is also applicable for Western Europe and Canada.

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Starting Your Search

Many tools and services exist to help you find a supplier that meets your needs.

Online Networking

Traditional Local Network National Resources

Powerlinx Tradeshows Local Professional Organizations

US Dept. of Commerce

LinkedIn Professional Associations

Personal or 2nd

Degree Connections

US Chamber of Commerce

Alibaba Industry Publications /

General Business Magazines

Word of Mouth Small Business Association

3

Inquire for Information

Once you’ve found a sizeable list of suppliers that seem relevant to your needs, request information about their products and pricing.

Specifically, make sure to inquire about the following:

• Product pricing• Order sizes• Production time• Production capacity• Shipping time, methods and costs

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Limit your initial search pool by eliminating candidates that cannot meet your business’s needs, i.e. through price, production capacity, etc.

Short-list the Most Promising Prospects

5

Request Samples

Once you’ve compiled your shortlist, it’s time to request that product samples be mailed to you.

Or, if you employ or contract a dedicated quality control team, now is the time to send them for an inspection.

6

Refine Your List

Once you’ve reviewed samples, further refine your shortlist to approximately three suppliers that meet your quality standards along with your pricing and production requirements.

7

Talk Numbers

Ask your refined shortlist to bid for your business. Remember, immediate pricing isn’t the only important factor here: long-term pricing options, flexible payment plans and track records should all be factors in your final decision.

Additionally, meet with your top candidates – in person if possible –to negotiate terms and gain a feel for the way they conduct business.

8

Sign Your Supplier

After negotiating with your shortlist, it should become apparent which supplier offers your business the best terms.

Have those terms written into a contract.

9

Consider Contracting Multiple Suppliers

Inadequate performance or unforeseen problems with a supplier can have potentially devastating consequences on the buyer’s end. For this reason, it’s common for businesses to maintain multiple supplier relationships for the same product type in order to reduce risk.

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Start Your Search on POWERLINX

Streamline your supplier sourcing process through Powerlinx

Get a pre-qualified list of suppliers that suit your business’ needs

See your business compatibility with your dynamic PowerScore

Organize business relationships in Spaces

Skip the back-and-forth conversations and discover detailed information on your supplier’s profiles

Try it free: www.powerlinx.com

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