Key Factors to Consider When Choosing a New Supply Chain Vendor

Posted by John Appel on Fri, Jul 23, 2021

store selection

Are you searching for a new supply chain consulting service? It's never an easy process. You need a vendor who can meet your needs, deliver on your schedule, and fit within your budget. Very often, you can't really know whether a vendor will meet all of your criteria until after you have already started working with them.

During your search phase, how can you tell whether a vendor really aligns with your objectives? It's helpful to have a plan in place before you start talking to potential vendors. Define your top priorities. Identify potential red flags as warning signs. Have a clear idea of what you want and what is most important to you.

Below are a few of the top factors you may want to consider in your vendor search, along with tips on how to evaluate each vendor. Don't start your vendor search until you have identified your most important factors and have developed a strategy because individual goals and requirements can
vary significantly,.


1. Service

planning engineer

Whether you’re buying dinner at your favorite restaurant or an order of industrial parts from a vendor, service is always an important factor in the buying decision. The consequences of subpar service are very different in those two scenarios, though. 

You may want to think of service in terms of partnership. Will the vendor serve as a partner for you? Will they adapt and evolve with the changing needs of your business? Bad service in a restaurant may ruin your evening. Bad service from a vendor could ruin your industrial project’s outcome.

For example, if your timeline changes, could the partner alter their schedule to help you achieve a better outcome? Could they provide technological transparency into the status of your orders so you can better manage your resources?

Look for a vendor who is invested in your success, who aligns with your corporate goals and who is willing to work with you to achieve optimal outcomes.


2. Quality

Your customers demand quality from you, so it's only right that you demand quality from your vendors. After all, the quality of their work directly impacts the quality of your products and services.

One of the best ways to evaluate a vendors commitment to quality is to visit them in person so you can see their processes and how they operate. What does their quality assurance process look like? What system do they use to implement continuous improvement into the processes? What about packaging and shipping, and their commitment to quality in those areas?

View More: Deufol Around The World 🌏

If you are considering overseas vendors, it may be difficult to evaluate their facilities in person. However, you may consider working with a supply-chain consultant who has team members located overseas but no matter the location or industry your company operates in, there are quality and optimization improvements that your consulting partner should identify together with you during the process of consultation in order to make your supply chain even more efficient and thus take it to the next level.


3. Price

packaging process

Price can be a tricky consideration when evaluating a vendor. Obviously price should be a factor, but that doesn’t mean you should choose the lowest price. Often, lower prices come with a reduction in quality or service.

Instead of examining the vendor’s price, focus on their attitude toward price. Why is their product priced the way it is? Is that price getting you enhanced quality protection and superior service? And how are they willing to tailor price to meet your changing needs?

Another important part of pricing is what the vendor’s approach is to reducing price in the future. For example, perhaps you have process improvements they could implement on their end to drive down price. Are they open to those suggestions and recommendations? Are they willing to work with you as a partner to improve efficiency and drive down cost for both parties?


4. Size and Scale

If you work with a global supply chain consultant, you can take advantage of their size and resources to tackle challenges related to your projects and even your ongoing supply and distribution chains. Some of the larger supply chain services providers have worldwide locations and resources to serve your needs and have supported many companies from different sectors with their client's specific requirements and goals providing a unique learning experience that takes place on both sides. 

For instance, Deufol has around 90 global locations. Many are strategically located near popular manufacturing centers in China and other parts of Asia. During your manufacturing plant relocation, we can manage your packaging and shipping from your overseas manufacturers to ensure that incoming shipments arrive intact to your new facility rather than your old one.

We can warehouse inventory in our facilities to simplify and streamline the relocation process. We can even perform light assembly or bundling and ship directly to your customers. At Deufol, we customize our consultation services to meet your needs.

Not all supply chain consultants have the global size and scope to provide those services. Some have a narrow focus on the relocation itself, without also analyzing your supply and distribution chains. A large-scale consultant can analyze your whole business so your operations aren’t disrupted by the relocation.


5. Technology

Increasing globalization also increases the complexity of a company's supply chain. In only a few cases can companies bypass the use of innovative supply chain management software. Not only does it support the holistic management of your logistics project, it can also help to save costs and time. Professional software also offers numerous scaling and synergy effects, which are particularly important for companies with several locations. For these reasons, we at DEUFOL recommend that our customers use a software solution of the latest generation to optimize their supply chain, which can also easily handle new challenges.


Finding the right vendor isn’t always easy. It can be less painful, though, if you develop a plan in advance that identifies the factors and criteria that are most important to you. Ii you need support with your supply chain project, DEUFOL is the right partner for you! The first step in our supply chain consulting is a comprehensive analysis of your needs. Feel free to contact us - we are available for you at any time.  Deufol_Logo_opt.png



Topics: Supply Chain

Let Us Know What You Thought about this Post.

Put your Comment Below.

tough packs solved
New call-to-action