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List
your major suppliers and what you will purchase from them.
Explain
why they have been selected and what alternatives there are if
items are required quickly and are out of stock with the supplier. Give
an indication of the trading terms required by suppliers.
As a part of this section you can briefly indicate your requirements
for holding stock.
Tracking down the best suppliers can be a very rewarding and informative
exercise. The savings you make will repay the effort and
you are likely to gain valuable information and insights.
The conversations you have with potential suppliers may well influence
who you use. Some may be indifferent, whereas others may be very
helpful and be prepared to spend time with you. It is from
these that you can get valuable information. They are also
the ones that are most likely to give you excellent service.
The success, or failure, of a major supplier can dramatically
affect your business and so it is important to ensure they are
reliable and financially stable.
There are three categories of supplies that you will need to consider:
-
- capital items
- resources
- materials or stock
Capital items
These are major “one off” items that may cost a lot
and include: - plant, machinery, computers, vehicles. They
are usually depreciated over a long period of time.
Resources
These are all the items that you need to enable you to run your
business. All the following are included in this category;
tools, equipment, office supplies, stationery, services, specialist
and professional services.
Materials or stock
Materials are the basic ingredients or components used in making
or producing a product. Stock refers to items that are bought
for resale.
Before locating your suppliers have a big brainstorming session
and make lots of lists. Imagine that it is your first day
of trading. Try and think of everything you could possibly
need.
- everything you will use
- everything you will sell
- everything you will need to run your business
- everything you will use to make your product
- everything that will make your company look good
Now that you have listed the items you need, you will have to
decide where you will get them from.
When making these decisions, which of the following will be important
to you and your business?
What you need to know about suppliers:
- Where are they located?
- What product/services do they offer?
- How much are they charging?
- What are their trading / credit terms?
- Is a trade discount available?
- Is there an early payment discount?
- How do you set up an account?
- How do you order?
- Do they have a catalogue?
- Do they deliver?
- What is their delivery time?
- What is the quality of their staff
How do you find out?
- Go and talk to them
- Send for information from them
- Talk to customers who use them
Your business plan will include:
- a list of your main suppliers
- their addresses
- telephone and fax numbers
- what you will purchase from them
- why you have chose these particular suppliers
Further Business Advice
The Enterprise Agency offers free and confidential
advice to businesses in North East Lincolnshire. If you have a
business idea and would like to give it the best possible chance
to succeed, then contact the Enterprise Agency on 01472 312121
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