At S.Syedain & Co we can provide start-up businesses with help and advice. Here are some basic considerations regarding suppliers and purchasing.
When it comes to building a market and servicing it, you and your suppliers are on the same side, so you should consider trying to build a relationship with them that reflects that.
Sit down with them as 'partners' and try to work out an arrangement that benefits both parties.
Try to identify:
- Products you can order in larger volumes in exchange for volume discounts
- Orders you can discontinue because you can buy more cheaply elsewhere
- Ways to revise delivery schedules to reduce your stock keeping costs
- Opportunities to share marketing or promotional costs
- Ways you can exchange information to improve efficiency at both ends
In a period of economic difficulty or uncertainty, remember that suppliers might raise their prices, so try to negotiate a long-term discount with them.
You could also consider putting all major costs out to tender on a regular basis.
If you are starting a business and would like help and advice, contact S.Syedain & Co.