There are generally 3 types of suppliers. Understanding how each work will let you know which type best fits your kind of operations. Each has their pros and cons, so it is best to find the best fit.
- Direct manufacturer – they directly manufacture whatever goods they supply and sell it directly to buyers. Since they are the manufacturers themselves, they will offer the lowest possible price. However, you may need to buy in bulk to meet the demand of each order. There are also 2 types of manufacturers. These are the big companies or independent manufacturers. The latter are smaller craftsmen with smaller operations. Orders may take longer, and the volume may not be as high.
- Wholesaler/Distributor – They do not manufacture the goods, however they buy in bulk. They have storage facilities to keep their inventory and are able to sell the items in the quantity you need. They are able to do this for multiple manufacturers, so you can buy a variety of items made by different manufacturers. Their price will be a little bit higher, to cover for their logistics and warehousing, but still cheaper than retail.
- Imports – For items that are not made in the same country, you may need to purchase them from an importer. Freight fees and other import taxes are a consideration when buying imports.
What makes a good supplier?
Price isn’t everything. The cheapest option is not always the best option. Suppliers will need to be consistent. They can fulfill your orders in a timely way. Remember, if they can’t deliver, you can’t either. Payment terms, reliability, location, and integrity are all important factors. These are the qualities which make a good supplier.
Whatever business you are in, how you work with other professionals will impact your operations. In case of any issues, it is good to know that someone always has your back. At Wellcovered Insurance, we put our clients first by offering them policies that they can afford. Learn more about our products and services by calling our agency at (386) 218-4951. You can also request for a free quote by CLICKING HERE.