Polish entrepreneurs have been changing their approach to supplier selection, and focus not only on the price criterion, but also on the supplier’s experience and responsibility in business. The reason for this situation is simple – they become more oriented towards partner-like relations. Completing the certification procedure is for a supplier a kind of privilege and the sign of nobility.
Is a gadget or a practical solution?
The perspective of a long-term relation affects the assessment criteria, shifting the focus to some aspects of cooperation that are difficult to verify based on a general research of the market. At the same time, it is almost impossible for a Client to conduct an in-depth analysis of the quality of processes of potential suppliers. It would require time and effort that a dynamic company cannot afford. This kind of intervention would also be a problem for the supplier, as he would have to concentrate on activities other than sale. This leads to a business need of using services of independent professionals who will take over the audit activities and, using a certification programme, will verify the actual quality of the supplier’s services in terms of the standard of processes, financial transparency, experience and reliability.
A responsible supplier – how to know him?
• Financial situation:
One of the key aspects confirming the company’s quality of management and growth dynamics are financial indicators. When selecting Suppliers, Buyers take into account, among others, general financial data of a potential contractor. However, they do not have access to individual results that represent the real standard of the company. In order to assess the actual financial situation of the supplier, the following indicators should be considered: return on sales, return on assets, liquidity ratio, return on equity and inventory turnover ratio.
• Experience on the market:
Unfortunately, the time of company’s operations on the market is not always proportional to its level of knowledge. Some of substantive criteria include: value of the contracts concluded by the supplier, the value of the contract with the biggest client or, finally, the quantity of references.
• Responsible business:
Social responsibility of a company should be considered taking into account the ethical, ecological and social aspects. Transparency and clarity are the key fundamentals of a company’s Corporate Social Responsibility.
• Orientation towards long-term relations:
This is the major trend in today’s business. Companies appreciate the advantage of partnership and modify their previous task-based approach. The business language is more frequently using terms such as “relations” or “trust”. The supplier’s quality is reflected, among others, in his orientation towards mutual benefits of cooperation, transparency and straightforwardness, both in its communication and documentation. Additionally, what matters the most is the supplier’s availability and willingness to consider specific needs of the Client.
A new quality
The above aspects create a full image of a company, and every Client would like to know it before deciding on starting cooperation. However, only the references of an independent source can be meaningful and objective.
A certified supplier is reliable and follows generally accepted standards of behaviour. Completing the certification procedure is for a supplier a kind of privilege and the sign of nobility. From the potential clients’ perspective, certification confirms the company’s ability to perform the contract. Therefore, the certificate is not just a gadget, but a practical solution that helps to increase Buyer’s safety and promote reliable Suppliers.