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Finding Suppliers Add to toolbox

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Suppliers are the businesses that you buy your raw materials/goods from to create your product/service to then sell to the customer.

Even if you make your products/services completely on your own, there will be a materials you will need to buy for things such as packaging or postage.

Suppliers can do more than just provide you with goods:

  • They can share information about the success of your product
  • Help track competitors’ action
  • Identify promising opportunities for product/service diversification 
  • Help cut costs

There are four main types of Suppliers:

  1. Manufacturers – businesses that source and build your goods
  2. Distributors/Wholesaler – these businesses buy from manufacturers and resell in different quantities and varieties to smaller businesses
  3. Independent crafts people – unique creations by specialists such as jewellery designers or furniture craftsmen
  4. Import sources – buying foreign goods from a domestic importer or travelling abroad/ordering from abroad to receive items

Despite the temptation to keep your cost of materials low here’s the things you want to consider when selecting a suppliers:

  • Reliability of consistent and timely delivery
  • Stability – solid financial businesses (to be sure they won’t go bankrupt) 
  • Location – to ensure timely and urgent deliveries, as well as ability to travel and meet your suppliers should you need to

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