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6 rules of sourcing and supplier relations

Aug 08, 2022
OptiBuy - a WNS company

Continuously developing markets and the increasing need to establish close relations with business partners mean that search for suppliers is becoming more and more of a challenge. All specialists know the rules to be followed during everyday duties. What, however, in the opinion of suppliers, can buyers do to improve their requests in order to make everyone’s job easier and receive better quotes in less time?

– In the end, there are people on both sides of this ‘barricade’. Respect for one’s work, communicating your decisions, transparency can greatly influence the overall partnership, and simply – bias the prices and shorten quoting time – says Bartłomiej Bącik, Partner at OptiBuy, an international consulting agency specialized in procurement and sourcing projects.

How to improve relations with suppliers and people responsible for valuation and service orders?

1. PRESENT THE PROJECT CLEARLY AND TRANSPARENTLY

Product/project presentation is one of the most important elements that can be used to determine the type of the customer interacting with the supplier. The ideal initial request for quote should contain as much information about the project, assumptions and expectations of the customer as possible,

2. KNOW YOUR SUPPLIER

The best way of starting cooperation is for the customer to visit their company, see their machinery, learn their philosophy and examine their procedures and production capabilities. Such a meeting is certainly more effective than even the best forms.

3. EXPECT A FEASIBLE QUOTING TIME

The busy market and the absence of available production capacities of the suppliers have considerably extended the quoting time, particularly for new customers. Shorten the time preparing beforehand.

4. PREPARE THE PERFECT RFQ PACKAGE

Provide as much information as possible. Don’t’ forget about absolutely crucial details. This affects the quoting time and the accuracy of the quote, and improves the final lead times.

5. KEEP IN TOUCH WITH THE SUPPLIER

If the buyer does not contact the supplier and does not reply to questions, this means that it does not regard the project as very important. The essence of communication is not only to improve the process and save time. It is also a matter of personal context, which can yield extra benefits.

6. GIVE FEEDBACK AND COOMUNICATE YOUR DECISIONS (regardless of choices)

The supplier does not learn anything if you only communicate that the price is too high. In fact, it makes the supplier less willing to prepare another quote. Let supplier know what are your expectations exactly.

What else can you do? How can you prepare? How much information is enough? How to develop a partnership?

Explore full article with:

  • extended descriptions and observations
  • direct insights from suppliers’ representatives
  • commentary of sourcing experts

in the firsthand whitepaper – Voice of the Suppliers

 

About OptiBuy

OptiBuy is an international consulting company specialising in procurement management. Our areas of expertise include procurement cost optimisation (cost reduction projects), Global Sourcing projects and implementation of dedicated procurement software solutions (Ivalua, NextBuy).

For more information, visit: www.optibuy.com or info@optibuy.com

Author
Bartłomiej Bącik
Partner

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