Public procurement from a single supplier

Today, the Government of our country is trying to create a favorable environment for healthy competition in procurement through tenders. But sometimes situations arise in which it is simply not possible to organize a trading procedure. In this case, 223-FZ allows purchasing from a single supplier. This allows customers to satisfy their needs as quickly as possible. The main thing is to know the features of such a procedure.

Features of direct procurement

Purchasing from a single supplier is classified as non-competitive. The customer is obliged to develop in advance a methodology for carrying out such a procedure. All rules are stated in the documentation. This follows from Part 3 of Article 3 of 223-FZ. The document is posted on the official website for public viewing.

The documentation may indicate general approach for this type of procurement. In this case, the decision on the price and specific types of necessary goods, works or services is made by the customer, based on his needs for this moment. The organizer is obliged to provide information about the need to choose this particular method of carrying out the procedure and the economic justification for the contract price.

The customer can also apply a price approach to choosing a procurement method. If total cost the purchased goods or services do not exceed 100,000 rubles, then the purchase can be carried out without special procedures. When the amount exceeds the threshold of 100,000 rubles, the organizer is obliged to provide a full justification for choosing this method, market research, present the candidate of the selected supplier for discussion by the commission, and develop competent documentation.

Main cases of direct procurement

According to the provisions of 223-FZ, the customer has the right to independently determine the cases in which direct purchase is allowed. Most often, this method is used under the following circumstances:

1. At a low cost of purchased goods or services. This amount is not established by law. Most often it is determined at the level of 100,000 rubles. For organizers whose annual revenue exceeds 5 billion rubles, this amount increases to 500,000 rubles.
2. If goods or services are purchased that only one company has the right to provide. For example, the acquisition of services from organizations related to natural monopolies.
3. When the purchase of goods for which only one company has exclusive rights is organized. This also applies to water supply, gas supply, heat supply and the like.
4. If the purchase is related to emergency circumstances, emergency situations, or danger to human life. However, performing the procedure in other ways is impractical.
5. The customer previously made a purchase from a specific company. Repeat purchases from the same company may be justified by considerations of standardization, or the purchased goods must be suitable for existing equipment.
6. When concluding or prolonging lease agreements, as well as purchase and sale agreements for specific premises.
7. Concluding an agreement for the provision of consulting, financial services, holding sports or cultural events, providing mobile communications, organizing exhibitions, seminars, conferences and so on.

This is not a complete list of possible situations in which the customer may choose this particular procurement method. The main thing is that the customer’s actions do not contradict current legislation and are justified by economic benefit or expediency.

How is the purchase carried out?

Before conducting a procurement using this method, the customer must develop procurement documentation, which should be published in the Unified Information System. The procurement plan should also be posted there. It is necessary to reflect direct purchases only if the cost of each of them exceeds 100,000 rubles.

Direct purchase is carried out by certain rules. The procedure and regulated deadlines are given in the table.

The contract system of government procurement, great and terrible, in a couple of years of its existence began to become a more or less commonplace phenomenon in the business life of the country. Almost all businessmen know about it one way or another, and many enterprises have already worked with it - both large giants, leaders of their markets, and small companies, which produce and sell a wide variety of products.

What is purchasing from a single supplier?

When is it possible to purchase from a single supplier?

• procurement of apartment building management services;
• acquisition of non-residential premises for government needs;
• purchases of goods, works or services by cultural institutions (the maximum amount is additionally specified - in this case, the volume of purchases is limited by 44 Federal Laws at 400,000 rubles per year);
• holding festivals, concerts and other cultural events on the basis of invitations;
• purchase of goods during liquidation emergency situations, as well as medicines worth up to 200,000 rubles;
• purchase military equipment, the analogues of which are not produced in Russia;
• purchasing goods from natural monopolies.

What is the procedure for purchasing from a single supplier?

Step one.

• Organize the procurement: approve the composition of the purchase, terms, prices, develop a project and issue an appropriate order.
• Select a supplier. You can do this yourself, but with mandatory consideration of the requirements of Article 31 - it is there that it establishes the requirements for what the sole supplier should be.
• Agree on a contract. Coordination in in this case has a very definite order. It, like everything related to the field of government procurement, is also approved by legal act. Since May 2015, this has been Order No. 189 of the Ministry of Economic Development of Russia dated March 31, 2015.

Step two.

Step three.

Step four.

Supplier reliability is an important component of a company's success and sustainability. Especially in a crisis. We will define the principles for forming a portfolio of suppliers, analyze the role of suppliers in our production, formulate requirements for the supplier, and discuss some anti-crisis measures.

To manage procurement competently, we need to answer 4 questions:

1. what do we buy,
2. where do we buy,
3. from whom and under what conditions,
4. how we will buy in the future.

Creating a quality product requires not only supplier selection and evaluation, but also supplier management. Supplier management is the creation and management of a portfolio of suppliers.

Phases of market development and principles of interaction with the supplier.

In the early stages of the market, only one thing was required from supply - the constant availability of the necessary goods. Later they began to demand a minimum price. Then the time came for quality and additional service. Relatively recently, many markets, in particular the market for electrical products, have entered a phase of development that requires the creation competitive advantages together with suppliers. That is, now we are talking about real partnership.

The highest form of partnership is the form in which the supply chain of three to four companies is a single logistics system - vertical integration. Unfortunately, I can't give specific example in Russian business. Such an example could be, suppose, the integration of a development company, a manufacturer of electrical installation products, a transformer manufacturer, a testing laboratory and an engineering company. Or this chain: manufacturer of cable products - manufacturer of electrical installation products - manufacturer of lighting products. In another area it could be the following chain: fiber manufacturer - fabric manufacturer - clothing manufacturer - retail network clothing stores.

This form of partnership will truly improve the competitiveness of all enterprises in the value chain. For example, the only advantage local producers have over imports is the ability to produce more of what sells, at a lower price, faster than importers, and stop making what doesn't sell. In such an association, it is possible to exchange information on sales and production plans in order to reduce inventory and reduce the time for developing new products, actually reduce the time it takes to complete customer orders, etc.

To determine your own supplier strategy, you need to complete several stages of work. Let's look at one specific example.

We have already talked about a company in which changes began with the reorganization of internal supplies and warehousing. The second step was to create a supplier portfolio and develop a supply management strategy.

Step 1. Analysis of the range of purchased products.

To begin with, we analyzed the range of purchased materials and divided them into the following categories:

1. Non-critical for production/sales - those materials that can be easily replaced with analogues and the absence of which will not lead to a stop in production or loss of customers;
2. Basic materials for production/sales. These include, among other things, consumables for equipment;
3. Problematic materials are materials from the basic category that are difficult to purchase, transport, store, process (for example, scarce, perishable, dangerous, requiring special conditions transportation and storage, etc.);
4. Strategic materials are those most significant, highly profitable materials that will be the main ones now and in the future, and from which the main product will be made, which in currently is under development.

Step 2. Determine the role of the supplier in the production process.

Figure 1. Dependence of the role of the supplier on the role of materials

Step 3. Determine the characteristics of a good supplier in different categories.

Then we determined what basic requirements this or that type of supplier must meet:

Regular supplier

There were quite a lot of non-critical materials. The frequency of deliveries was different: one-time, regular, and periodic. They accounted for about 40% of operations for processing and accepting orders. Therefore, the following requirements for suppliers were adopted:

1. ease of working with it: minimal delivery lead time (from the moment of ordering to the arrival of the goods), mandatory delivery by the supplier according to an agreed schedule, convenient packaging, for multiple deliveries per month, registration with a single invoice and package of documents, etc.
2. standard quality and low prices
3. expedient cooperation on contractual obligations.

In this case, the optimal number of suppliers for one type of product was chosen by 2 suppliers with a 50:50 division of the purchase volume between them. To be on the safe side, the purchasing manager will have to periodically monitor the market and have 2 more insurance suppliers in case it is necessary to “intercept” the goods.

In a crisis situation, non-critical materials become the first candidate for cost reduction. Carefully analyze the entire range and determine which products can be discarded, which ones can be replaced with cheaper analogues, and for which products the quality requirements can be reduced.

Qualified supplier

Basic materials are the most expensive part. The frequency of deliveries is, in most cases, regular. Any delay in the supply of materials or poor-quality components may result in a production stop. To compensate for this, it is necessary to keep very large safety stocks, which seriously increases costs. Materials with hidden defects, when entering production, lead to defects finished products and customer complaints. Therefore, the following requirements for suppliers of basic materials were adopted:

1. Reliable supply: strict adherence to agreed deadlines, accuracy of packaging, reservation of materials at the supplier’s warehouse, delivery by the supplier
2. Stable product quality, in addition, the supplier undertakes the functions of checking the quality of products and guarantees quality control
3. Mandatory deferment of payment. At the same time, the ideal period was considered to be the availability of an investment resource of 7 days (i.e., from the moment when the raw materials are already shipped to the client in the form of finished products and money is received for them, 7 days remain until the accounts payable are paid).

At the same time, it was determined that the number of suppliers for one type of product will also be 2 (in some cases 3) with the distribution of the volume of purchases between them 70:30, i.e. one is the main supplier, the other is a backup. Here, market monitoring should be carried out constantly, but the main emphasis is on developing partnerships with selected suppliers. And therefore, it is extremely important to take the assessment of the supplier seriously when choosing one. Changing a supplier can be very costly for a company.

In a crisis, focus... on the future. Assess all the resources you have: customers, suppliers, warehouse, goods, technologies, equipment, personnel, etc. Conduct an analysis of changes in the market and make your forecast for the development of the situation in your market, in the supplier market and for you. You need to determine what you have that is unique and what you have that you will need in the future. It is necessary to get rid of everything that you do not need, even if you once paid dearly for it. If the company does not have an investment resource, leave only the minimum of materials that are extremely important for survival and that customers need.

Reliable supplier

There weren't many problematic materials. But the risks and costs were very high. Among them were also goods that had to be purchased in large quantities in China due to periodic shortages in Russian market, long wait for delivery and long storage. Problem materials accounted for 24% of costs and 18% of production downtime.

After analyzing all types of problems, it was decided that suppliers of problematic materials must meet the following requirements:

1. Willingness to carry out joint programs to optimize supplies: change shipping standards, packaging quality, frequency of deliveries, take care of increasing product safety, safety of transportation, storage, and processing.
2. A joint focus on value creation, including the ability and willingness of the supplier to take over part of the processing process in-house, as well as train workers and operators in the proper handling of raw materials, provide technological consulting and support.
3. Proximity of the supplier. For remote suppliers - the presence of distribution channels or regional warehouses close to our production; or providing such a loan term, even in several tranches, which will be repaid at least at the time of processing of the purchased raw materials.
4. Long-term contracts.

For almost all problematic materials, it was decided to choose one supplier, who had previously shown not only partnership intentions, but also a readiness for integration. This is the preferred supplier. Joint programs require a lot of time and effort on both sides. And opportunistic relationships and pressure on the supplier are not suitable here. In the event of force majeure, the market should be regularly reviewed to determine the availability of an insurance provider for a one-time purchase of a one-time volume.

What to do with accounts payable if solvency is low? Shift all payment delays to goods that do not bring in either profit or money in circulation. Pay on time only for items of greatest importance, selected from the categories of essential, problem and strategic materials. Do not immediately pay those suppliers whom you replaced or removed from the product line. Pay those suppliers you cannot do without and who have demonstrated their resilience and loyalty.

Strategic supplier

Strategic materials are those materials whose contribution to value creation is quite high now and in future key, highly profitable products; they have a certain share of costs in total costs and a high participation in creating profits. Such materials turned out to be about 12% of the entire range. After a thorough analysis of all problem situations with such materials, as well as development plans/new product development and supply programs, have identified the following requirements for a strategic supplier:

1. Readiness for system integration and coordinated business policy based on technology already available at the enterprise
2. Optimal organization of your own production thanks to good cooperation with your subsuppliers
3. Availability of sufficient funds to carry out research and development work, focus on innovation
4. Willingness to accept market risks.

After analyzing the supply market, it became clear that virtually no supplier meets these requirements. It was decided to choose one closest to each this portrait supplier for its further development and cooperation. Transfer 70% of the volume of purchased products to this supplier, and leave 30% to a qualified supplier. In the future, transfer the entire volume to it, but only when the company is absolutely confident in high degree reliability and partnership.

During a crisis, you can see how well the supply strategy was defined, and whether the choice of supplier was carefully carried out in the previous period. It is the performance of existing problem and strategic materials suppliers that will reveal the quality of your supplier selection and supplier management process. And right now we need to work especially hard and carefully to change the business system. Previous methods were growth-oriented. Now the situation has changed fundamentally and new, high-quality, low-budget forms of relationships, other processes and technologies are required. It is necessary to build a system that will allow the business to survive now and become the basis for future growth. You shouldn’t wait for spring and quietly watch what will happen, or think that the crisis will have little impact on you. Already, quick, decisive and methodical action is required, which does not end only with budget sequestration.

Step 4: Supplier portfolio analysis and assessment.

After identifying the profiles of a good supplier depending on its role, a thorough analysis of all available suppliers was carried out to select the main suppliers in order to optimize the entire portfolio. The entire list of suppliers used consisted of 211 companies. However, only 98 of them were used fairly constantly, and only 56 did not have serious complaints about their performance. The distribution of procurement volumes between suppliers was random, no long-term contracts were signed, and the performance of suppliers was not assessed, with the exception of recording complaints. For some materials, complaints were made against all suppliers, and therefore we additionally conducted a market analysis, expanding the lists of potential suppliers by type of product (long list).

After defining the role of materials and the role of suppliers, it was decided to gradually reduce the supplier portfolio to 114 companies (see Figure 2 for the supplier selection process).

To select suppliers, a mechanism was created for selecting and evaluating suppliers for all categories and types of goods. Of all the methods, the weighted assessment scheme was chosen as the basis.

An example of using a weighted scoring scheme:

For example, for one type of raw material the quality factor was identified as the most important. We also chose two other parameters - price and service, less important, but significant. It was determined that the supplier rating would be assessed on the assumption that quality is 50% of its original value, and price and service are 25% each.

Selected point system:

Quality - subtract the percentage of rejected items from the original 100

Service - For each delayed delivery, deduct 5 points from 100

Price - calculates the lowest price index based on known data as a percentage of the price actually paid (divide the minimum known price by the actual price paid and multiply by 100)

In the last quarter, the supplier delayed deliveries 5 times, the minimum price for that period was 95% of the price paid, and 12% of the delivered products were rejected. Evaluated according to the following scheme:

Quality: 50%×(100-12)=44.00

Maintenance: 25%×(100-25)=18.75

Price: 25%×95=23.75

_________________Total: 86.50

When evaluating other suppliers according to this scheme, this supplier took 3rd place in the ranking.

It should be noted that in each category of materials (non-critical, basic, problematic, strategic) there were certain different types products individual evaluation parameters, which depended on the degree of importance of the product in the line of purchased products and on the degree of development of the supply market. For example, the requirements for cable and plastic suppliers were different.

Figure 2. Supplier selection and evaluation process

Step 5. Work with the supplier.

Next, meetings were held with all suppliers who were on the short list. They were informed about the requirements and the most important aspects of the interaction. It was proposed for another quarter (according to some materials - 1 month) probation, at the end of which a decision will be made on the volume and duration of contracts. All suppliers were given Feedback performance evaluation and its ranking among other suppliers was reported. As a result of this work, the number of suppliers was reduced within 2 quarters to the selected value. And claims regarding delivery quality (deadlines, packaging, product quality) decreased on average by 34% in just the first quarter.

Now it is necessary to carry out serious work with key clients and suppliers. Jointly determine sales and procurement forecasts, opportunities and market conditions of clients and suppliers, openly discuss the situation and financial condition. Such meetings should be made regular. It is very important to take criterion measurements and monitor the dynamics. Only such joint and open efforts will allow us to stay afloat and quickly start after the crisis bottom.

What requirements must participants in public procurement meet? And is there a difference in the terms Public Procurement Supplier, Executor, Procurement Contractor? Read the answers to these questions in the article.

So, have you decided to try your hand at government procurement and definitely win the tenders you need? Do you already see yourself as a government procurement supplier? Great, that's a great goal! But to achieve it, it will not be enough for you to simply take part in the purchase. It is highly advisable to understand all the concepts and terms of the public procurement process. Let's start with the terms.

1. Participants in public procurement – ​​who are they?

Public procurement as a process is always carried out between two parties. These parties are defined by Federal Law 44-FZ. According to the law, on one side of the procurement is the Customer (state or municipal body), and on the other side is the Procurement Participant. And speaking globally, in general, the entire public procurement process is aimed precisely at ensuring that the Customer identifies applicants for the title “Procurement Participant” and, in the end, selects a winner from these applicants. So who can act as a Procurement Participant? Let's turn to the law.

According to paragraph 4 of Article 3 of the Federal Law “On the contract system in the field of procurement of goods, works, services to meet state and municipal needs” dated 04/05/2013 No. 44-FZ, a procurement participant is almost any entity. And for the Customer, most often, its legal form, form of ownership, location, and even the place of origin of capital do not matter.

But the word “practically” was used for a reason! The law limits the ability of offshore legal entities to participate in public procurement. Typically, offshore companies do not provide tax, accounting and other reports government agencies and, moreover, have the opportunity not to disclose information about their owners. Of course, such an offshore procurement participant can create certain problems for the state, and therefore such legal entities are removed from government procurement.

We conclude that the procurement participant is any legal entity with the exception of an offshore company. By the way, a procurement participant is not necessarily and not only a legal entity. For example, the same Article 4 of Federal Law 44-FZ provides the opportunity to to an individual become a participant in government procurement. You don't even have to register as a member to do this. individual entrepreneur. However, if you plan to participate in auctions more than once, you will still have to register an individual entrepreneur.

2. The difference in the terms Public Procurement Supplier, Executor, Procurement Contractor

IN Federal law about the contract system, only the term “Procurement Participant” is defined, but in life you have probably come across other definitions of a participant. For example, Supplier, procurement contractor or contractor. Is there a difference? And if it exists, what is it?

To answer this question, it is enough to have the most superficial understanding of the civil legislation of Russia. And the whole point is that the supplier, the procurement contractor, and the contractor, in essence, are synonyms for one party to the contract for the performance of work or the provision of services. In a contract for the provision of services, the term “Contractor” is usually used; when performing work, the term “Purchase Contractor” is traditionally used. The term “Supplier” is often used in contracts for the supply of goods. As we can see, despite the different terminology, all these terms denote the same party to the contract - the one that will execute this contract. And since public procurement in our country is carried out for the performance of work, the provision of services, and the supply of goods, this means that the Procurement Participant can be a Contractor, a Performer, or a Supplier. Whatever is closer and more convenient for you, call yourself that.

To fully disclose the issue of terminology, I note that the Law on the Contract System also uses terms such as (contractor, performer) and Subcontractor. According to the law, suppliers participate in tenders and auctions of the Customer in order to conclude a government contract. However, the Sole Supplier signs the government contract without first competing in the bidding. Such purchases take place without holding competitions, because the Customer already knows in advance with whom he will conclude his contract.

The search for a Subcontractor usually takes place when procurement is carried out to perform any construction work. The specifics of construction legislation are such that the future procurement Contractor must provide a certificate of admission to such work. However, not every procurement contractor may have such a permit. Or, there is evidence, but specific necessary work not listed there. Then the procurement contractor is looking for someone who can perform such work for him, that is, a Subcontractor. And enters into a subcontract agreement with him. It turns out that the procurement contractor wins the tender and enters into an agreement with the customer. And the Subcontractor does not conclude a contract with the Customer, but works through the procurement Contractor who has already won and signed such a contract with the Customer.

As you can see, the law on the contract system has a clear definition of the concept of “Procurement Participant”. And in practice, additional synonyms for procurement participants have already emerged: Supplier, Contractor and Procurement Contractor.

Regardless of what kind of business and in what area you are going to develop, you need to know the criteria for choosing a supplier as accurately as possible. Indeed, in any case, how successful your business will be largely depends on those people who will supply you with raw materials or various finished products. To make it clear how important it is this question, we can give a couple of examples.

Butcher shop

If we're talking about about a newly created butcher shop, the main criteria for choosing a supplier in this case will help us really find a supplier good product. Regardless of how much money you have invested in advertising, and how wide a range of products you offer, if you cannot provide the appropriate quality of products, then it is unlikely that you will be able to turn one-time customers into regular ones. At the same time, every successful businessman knows that first of all you need to strive to develop a large base regular customers, therefore, the supplier selection criteria are among the most important and should be given your attention first.

Furniture manufacturing

Same example. You try to offer your customers the most interesting ratio of quality and price of your products, but at the same time you are unlikely to be able to produce truly high-quality and at the same time inexpensive furniture if you were unable to correctly determine the criteria for choosing a supplier, and you are supplied with low-quality material.

Thus, when it comes to the manufacturing sector, suppliers of raw materials or various components will play an extremely important role. There are a huge number of such examples, and each of them clearly shows how important it is to really solve this issue correctly. That is why you need to know the main points that you should pay attention to when choosing a responsible supplier.

Where and how should you look?

Initially, I would like to consider a few useful tips qualified specialists who know what a direct supplier should look like. Such strategies are followed by the vast majority of experienced entrepreneurs who have already long time work in their field of business.

First of all, you must understand that the importance of various criteria is different in each individual area, but in general, each of them is important to one degree or another, and will ultimately affect the success of your business.

Categories

You must initially understand what categories exist. There are three in total:

• Direct supplier;
• Reseller (they are the ones found most often);
• Exclusive supplier.

Of course, it would be most optimal to work with a direct supplier, since in this case you will be provided with the largest possible range of products, as well as the most attractive prices and various discounts. But there are some nuances here too. In the vast majority of cases, such companies work directly only with what they consider to be fairly large customers, and in addition, the manufacturer may work in another region, country, or even on some other continent, which can greatly complicate your cooperation.

In order to be as close as possible to their customers, serious companies prefer to work through various exclusive representatives of their products in different cities and countries. It is for this reason that in many situations it will be most optimal to settle payments with suppliers of this type. In this case, you will also receive an acceptable price, favorable conditions and a wide variety of discounts from the manufacturer.

Not every entrepreneur who has just opened his own business can enter into an agreement with such suppliers, because, as mentioned above, settlements with suppliers of this level are carried out by large organizations. It is probably for this reason that the vast majority of entrepreneurs are forced to enter into agreements with various resellers.

Price

When concluding an agreement with suppliers, you should be guided by the cost of the products offered to you, and choose exactly the offer that will give you the opportunity to receive the expected profit, and at the same time give your customers a truly high-quality product at a normal price. Review offers from several suppliers, and then choose the most optimal offer in terms of price and quality.

Minimum volume

Quite often you need to pay special attention to the minimum order quantity. It is often much more profitable to buy a small batch of goods with a small markup than to spend a large amount of money on purchasing a large batch of goods, which later turns out to be completely unclaimed.

Supply chain

When choosing a supplier, special attention should be paid to the supply chain. Immediately try to study offers and enter into agreements with suppliers who can independently supply goods to you at the best price. This especially applies to those suppliers whose representative offices are located quite far from you. long distance. In addition, also ask how far away their warehouse is, because the speed and frequency of deliveries of raw materials or any finished products will directly depend on this.

Range

The range represents one of the most important criteria. It is quite natural that it is better to cooperate with those companies that can offer you the widest choice, because among small companies there are often unscrupulous suppliers, and, in principle, a small choice significantly limits your options. Even if at this stage the issue of choice is not very significant for you, do not forget that in the process of developing your business this issue can be very acute.

Among other things, you should also inquire about the terms and methods of payment, guarantees for the products provided, work schedules, and also ask a question regarding the return of defective products. And only then, based on the results obtained, make a decision about whether this supplier is suitable for you. Also, always strive to work directly with the manufacturer, if possible, because, in addition to the ideal price-quality ratio, you will not be bothered by unscrupulous suppliers.

Determine the quality of products from other partners

Ask any businessman what is most important in the process of choosing a supplier, and everyone will tell you that the most important thing is product quality, but many do not know what exactly is hidden behind this broad concept.

For example, if we are talking about any long-term production, you may not look at the brightness of the pictures in the catalog or the freshness of the goods offered, but go to some store and look at the appearance of products from this supplier that have been in use for a long time time. At the same time, you should pay your attention not to demonstrative products, but to randomly selected ones. This way, you can immediately understand which products are truly high-quality and which are not.

Any product deteriorates over time, so it becomes immediately noticeable how high-quality materials and components a given supplier uses, and also how responsibly he treats his work. Experts highly recommend that you set aside a few hours to conduct such an experiment to determine whether your criteria for selecting suppliers of products from a particular company meet. Indeed, in many areas such a situation often occurs that in order to release products with an attractive appearance much easier than actually providing high quality and durability.

Is the product in stock?

The vast majority of suppliers have their own warehouse, where the most popular and consistently purchased products are stored.

It is important to make sure that the warehouse stock of the company you choose is sufficient for the supplier to be able to provide you with an uninterrupted supply of goods, and logistics is an important issue in this case. It is best to choose a supplier in your region, so that the goods can not only be provided to you as needed, but also done in the shortest possible time.

At the same time, do not forget that your company is not the only one on the market, and you have competitors, so this supplier will most likely have to supply these products to other companies. That is why you must make sure that the warehouse balance is approximately 5 times larger than your order. Only in this case can you be truly confident in the stability and reliability of this supplier.

Available budget

If you have determined that the company meets the basic criteria for selecting a supplier, during the negotiation process, initially say what you expect the contract budget to be. This approach is much more effective compared to organizing tenders in which several companies will compete with each other, because in fact, in the process of such a tender, an agreement is often concluded between a completely dissatisfied customer and a disadvantaged supplier, which often leads to far from the best consequences.

Describe your budget and allow your potential partner to agree the specification with the operating organization. Thus, justification for choosing a supplier will allow you to maintain a profit margin, as well as get rid of subsequent difficulties that are associated with the delivery of the object. In other words, you should trust specialists with a good reputation, and then evaluate the level of professionalism based on the results of their work.

How competent is the manager?

If you have a truly competent manager working with you, you can be sure that this will save you money and avoid serious large quantity a variety of errors. Why should a customer do something that a supplier can do? Thus, the criteria for evaluating the choice of a supplier should include the professionalism of the manager and the number of “options” available to you.

For example, you may ask whether the manager can prepare a presentation, draw up approvals, collect all the necessary signatures, and also design your future work. If such opportunities are really provided to you, this is a very good sign, which, among other things, will increase your status in the professional field. In addition, you should definitely pay attention to how quickly and correctly the employee answers the questions posed, because this directly characterizes his interest in your further cooperation, and will also partially provide you with insurance that after receiving the money you yourself will not have to run after the supplier.

Delivery time, minimum advance

Quite often, the actual result may differ significantly from the declared one, and in order not to receive an unexpected surprise during the delivery process, you should inquire in advance not only about some nominal period, but, in addition, about the link to a specific date. Some seasonal markets are volatile and their timing can vary quite a bit. But in any case, a large warehouse stock will help smooth out a strong increase in deadlines. If it is not there, but the supplier claims that the delivery time will be extremely short, you, in principle, should already think about his integrity.