There are 12 factors to consider when choosing suppliers for hotel purchases: avoid what can happen

Original: Li Sheng

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The decision to use an existing provider or try a new one depends on many factors and circumstances

These factors and circumstances

Advantages and disadvantages that may arise when using some alternatives

Key considerations

1. Market conditions

If buyer works with only one supplier

Increased monitoring of market conditions is required to keep suppliers competitive

Finding new sources of desired products

Buyers can prevent unreasonable price increases or quality reductions from existing suppliers

2. Product complexity or technology change

Existing suppliers

May be sole owner of a particular patent or process

The possibility of using other sources is excluded

In addition

If product uses expensive tools, dies, molds or fabrics

Then cost of duplicating equipment will also discourage use of new suppliers

On other side

Keeping an existing supplier may cause buyer to lose new technology

That is, a new technology that a new vendor's product or service can provide

Third, urgency of request

New supplier

Creation inevitably takes time and experience to train business if product is needed quickly

Then choosing a new supplier may not be appropriate

Fourth, quality requirements

Existing suppliers

May vary in quality

So much so that buying elsewhere won't be a major problem

On other side

If quality of existing suppliers is barely acceptable

A new supplier deserves serious attention

New suppliers may be desperate for new business

Therefore, we can make special efforts to provide high quality services

V. Procedures for Suppliers

Supplier

How products and services are produced and sold, and to what extent vendors outsource

What are their procedures for acquiring, producing and maintaining products and services

6. Enough competition

New supplier

Programs may be offered to increase supply and competition

For example

A new supplier can take buyer out of a single source situation

New supplier

May provide technical or other support not available from existing sources

However

The buyer should carefully consider use of new suppliers

Does new supplier bid too low to make a profit?

What impact will this supplier behavior have on purchasing company in future?

The more important product or service

Evaluate potential sources more carefully

Usedetailed work specifications and instructions to provide relevant contract terms for future price negotiations

And a careful assessment of supplier spending data

These considerations are just part of what a buyer thinks when choosing a new supplier

7. Cost and value of source

Purchasing a specific item

The price can only be 1/3 of total cost of ownership

Continuity of supply is main factor that excites buyer

The purchase price can be a relatively unimportant matter

Quality

Service and technical support and supplier innovation

All these elements add up to total cost of ownership

Accountability and problem solving

Maintenance and operating costs and depreciation are also factors to consider when determining total cost

VIII. Long term needs

Finding new sources of supply

The buyer does everything possible to protect enterprise's supply chain from losses when existing suppliers do not fulfill their obligations in accordance with agreement

However

It is also useful to keep in touch with existing suppliers

Especially when these companies prove that they can and are willing to provide satisfactory quality at a bargain price for a long time

Standard service and delivery times

These vendors can be good candidates for certain types of partnership deals

Nine, long-term relationship

Procurement and Supply Management

The main goal is to create a competitive advantage by developing a global supplier base.

This relationship is characterized by close cooperation between buyer and supplier

Usually developed as part of a long-term collaboration

Frequently changing suppliers indicate price, not total cost

Switching suppliers will increase costs

Most buyers agree that switching suppliers only makes sense if difference in total cost is significant

The more supplier knows about buying company

The longer you focus on relationships

Suppliers will be more willing to take cost-cutting measures for buyers

10. Demand adjustment for supplier base

Search for potential suppliers

And develop new sources. It is very important to maintain security of supply

Despite choice of supplier

In addition to what was brought to your attention in process

There will also be suppliers whose performance is unsatisfactory

You should usually tag suppliers and provide them with a plan to fix performance issues before production stops

However

Sometimes only viable option is to replace those who are performing below expected with a new postattendant

11. Changes in supplier companies

If an existing supplier

Significant changes, such as retirement of key personnel

Merge or absorb

This may increase likelihood of supply or quality mismatch

If one person starts and runs a business, it often gets too big

Much of what is beyond personal control

Thus, while disrupting normal course of business, such conditions may justify search for new suppliers

12. Supply stability

Supply disruption linked to decision to use existing suppliers

Or important things to consider when buying from a new supplier and

Supply disruptions among existing suppliers could be caused by a strike

Fires, natural disasters, power shortages

Problems with quality or production

Due to problems with suppliers, financial problems and change of ownership

If you have a realistic emergency plan

Multiple production facilities

Effective production and quality control systems and management succession planning

You can improve supply consistency with existing suppliers

Interruptions in supply from new sources can be caused by a number of factors that cannot meet promised prices

Quality and service

These may include

Inadequate communication of requirements to suppliers

Insufficient supplier ability to meet requirements

Power limitations and unexpected speed with which original supplier was eliminated

In some cases

Problems of incompatibility with existing providers cannot be solved by looking for new sources

Partnering with existing suppliers may be best option