The Importance of Compiling a Potential Supplier List

Any project manager worth their salt will tell you that compiling a potential supplier list involves more than scanning through price lists and picking the cheapest option. Especially in the case of new businesses, potential supplier lists are of the utmost importance as they lay the foundation for quality assurance. As a business owner you need to be absolutely sure that the suppliers you choose are able to comply with your demand and, by extension, the demand of your customers. Your products need to be delivered on time and at the right price in order to keep your reputation in good standing. You need to be sure that your potential suppliers are able to keep up. Identifying potential suppliers can be done in a variety of different ways. Word of mouth through employees and clients, international seminars, and market analysis reports are probably the most popular ways to source the necessary information. Once a large list of suppliers has been identified it becomes necessary to separate the wheat from the chaff, so to speak.

Compile your potential supplier list based on the following criteria:

  • Storage facilities
  • Specific delivery methods
  • Quality standards
  • Return policies
  • Terms and conditions of payments
  • Order quantities
  • Testimonials/references