We choose our stores. We select our staff. We select the goods to be transported, and in that sense, we select our suppliers. Selecting the right suppliers - besides managing these vendors during the selection process and beyond - can often be the difference between making your store profitable or simply provide real estate for vendors to sell their wares. It's time to run your!
So raise your hand if you have undertaken a comprehensive Request for Proposal (RFP) to your vendors. In reality, not many have as far to evaluate multiple vendors, creating competition for space in your store. How to manage the RFP process can and will set the tone for all vendors go-forward? A well thought out selection process of suppliers, can offer real opportunities for you in the following areas:
Rebates: Did you know that sellers offer discounts based on product placement, rack accessories, product movement and other considerations? In some cases, the seller receives manufacturing discounts you need to ensure they are passed on to you. The RFP process to identify and capture ensures their fair share.
Incentives: The seller is in store for one thing - to sell their product. The fulfillment of the objectives of the vendors will only be achieved if they align with your goals. What types of incentives do you provide the sellers to meet that goal? Work with the vendor to establish incentives for each party to foster alignment.
Deliveries: You pay for delivery if you believe or not. Managing the amount of deliveries to your store once a week to have enough inventory on hand, but not so much that you are paying full shipping charge for partial deliveries. You may want to consider adjustments based on seasonality.
Marketing: Identify programs and investments that will partner supplier in advertising and promoting their products. This should be administered with global commercialization of its store and is determined jointly with the vendor to ensure its financial obligations as well as the time.
Payment Terms: Standard policy is 30 days, but have you wondered about discounts if you pay before? In some cases, the squeaky wheel gets the oil, and if you are able to negotiate more favorable payment terms, they do.
Product Returns: Have you reputable a definite contractual obligation or damaged product returns? Re-slotting fees and other additional charges, for their dealer for returned products can eat away at your gross profit. Also, now is the time to set the process of replacing damaged products.
Contract Terms: How long this provider committed and what the "out clauses" in the contract if a seller better come with us? The best place to agree this is during the request for proposal process when the seller is hungry for your business.
Mark-Ups: Every product you buy comes with a corresponding mark - or profit manufacturer / supplier. Most of these ranges are determined by product category rather than by product SKU. Knowing its various range of brands by category industry better prepare you to establish the best cost structure of product purchase.The author is an experienced writer, he is writing this time for global.tendernews.com, it is a leading online tender service website. At present, he is writing on different topics like, contract and procurement, EU procurement, OJEU tendering, OJEU procurement, tender for contracts, etender, open bids, etc.