How to choose right suppliers of LED lights

When choose suppliers, you need to consider: quality, warranty, style, service, and cost performance. How you weight up the importance of these different factors is based on your marketing strategy and positioning.

Strategy Overview

What is the key point? Before purchasing, in order to set the right purchase target and standard, you need to know clearly your marketing strategy and positioning. Quality, style, customized service, lead time and price etc factors may be the key point you need to consider.

How many suppliers needed? One supplier can provide different products will improve your purchase efficiency, and make suppliers willing to provide your with better service. However, buying from only one supplier can be dangerous – where do you go if they let you down, or even go out of business? Equally, while exclusivity may spur some suppliers to offer you a better service, others may simply become complacent and drop their standards. Using which strategy is depended on your balance to risk and efficiency.

Related Factors

  • Quality and warranty. Means the quality of the products you purchased can meet your customers’ needs, or conform to your target market’s needs.
  • Speed and flexibility. Means that flexible suppliers can help you better response to customers’ ever-changing needs or emergency issues, so you can reduce capital pressure and financial risk.
  • Cost performance. Lowest price do not mean best cost performance. To get the best quality and service from your suppliers, you have to make a balance choice between the price you are willing to pay and the quality, service you want.
  • Service and communication. On time delivery, quick response, responsible are the quality a good supplier must have. They will also often provide marketing and technical suggestions to customers. All these need suppliers’ clear and in time communication.
  • Payment safety. Credit investigation is good for both parties, at least you can know something about the history of the suppliers. You can start from small quality with high frequency purchase to check the credit of suppliers, and decrease the risk of purchase.

How to find potential suppliers

Collect information by Multi-channel is the base of finding right suppliers.

  • Recommendation. Ask friends and business acquaintances. You’re more likely to get an objective and honest assessment of a supplier’s strengths and weaknesses from someone who has used it.
  • Internet. Internet can help you collect more information with higher speed and lower cost, which is becoming a trend.
  • Exhibition. Exhibitions offer a great opportunity to talk with a number of potential suppliers in the same place at the same time.
  • Media. If you miss the exhibitions, then industry trade magazines will be a good choice.

Making Supplier Lists

Once you got a clear idea of what you need to buy and you have identified some potential suppliers, you can build a shortlist of sources that meet your needs.

When considering the suppliers on your shortlist, ask yourself the following questions:

  • Can these suppliers deliver what I want?
  • How long the company has been founded? (Tips: you can go to website“Wayback Machine”to check out the history of suppliers)
  • Who is purchasing suppliers’ products?
  • Do the suppliers get any government license?
  • Do the products have any certificates?

Of course, only yourself knows best what you want, so start the brainstorm.

Choosing suppliers

Once you have a manageable shortlist, approach the potential suppliers. Provide a clear brief, summarizing what your requirements are and giving an idea of the level of business you hope to place.

Rather than specifying exactly what you want to purchase, you may want to ask suppliers for their suggestion, or give a approximate budget, ask suppliers provide you several solutions for option.

When you have got the responses, compare the products or solution provided by suppliers in terms of what matters most to you. For example, the quality of their product or service may be most important, while their location may not matter

Price is important, but it shouldn’t be the only reason you choose a supplier. Lower prices may reflect poorer quality goods and services which, in the long run, may not be the most cost-effective option.

Wherever possible, meet potential suppliers face to face visit their factories, and see how their businesses operate.
 

Notices

A written contract helps avoid uncertainty and minimize the risk of disputes. So write all your requirements into the contract.

After signing the contract, keep contact with suppliers, if need revise or find potential risk, can communicate with suppliers in time.

Look for opportunities to deepen the relationship with key strategic suppliers, explaining your plans and how they could be involved. For example, your suppliers may be able to help with advice on new technologies and materials that you could use to improve your products or your market competition ability.