How to Identify Reliable Suppliers for a Trading Company

If a trading company is to be successful, it needs to have reliable suppliers. You therefore need to put in a lot of effort, when identifying the suppliers to work with in your trading company. If you end up with unreliable suppliers, your business will suffer terribly. You will soon find yourself being unable to fill your customers’ orders in a timely manner. You will then start losing customers. The trading company will start making losses. Soon it may have to go out of business: all due to lack of reliable suppliers.

One of the most important things to pay close attention to, when trying to identify reliable suppliers for a trading company, is the track record. You are better off working with suppliers who have a track record of reliability. If a given supplier has been reliable in the past, there is a good possibility that he will be reliable in the future too. On the other hand, it is unreasonable to expect a supplier who has always been known to be unreliable to suddenly become reliable upon getting your contract.

Another important thing to pay close attention to, when trying to identify reliable suppliers for a trading company is capacity. So you need to work with suppliers who have capacity to meet your orders. Sometimes you may find a supplier who is indeed very reliable but who, unfortunately, lacks the capacity to do big business. So capacity is an important consideration here. The whole thing is akin to what we see with the double your line customer service — where the company aspires to build capacity to serve all its clients. That is on top of being reliable. So capacity is an important factor here.

Of course, if you come across a very reliable supplier who, unfortunately lacks capacity, you can opt to work with him in building capacity. It may be just a question of arranging for extra financing, and within weeks, the supplier ends up with enough capacity to meet your orders.

Ultimately, it is a good idea to assess the various suppliers objectively, rate them, and in the end be in a position to pick the most reliable ones. In other words, you need to undertake the supplier selection exercise in an objective (rather than subjective) way.