Seeking valid and reliable suppliers

Last week I talked about how it is becoming increasingly difficult to have visibility on incoming contracts. Given this situation, there are two fundamental questions: understanding where and how much to invest (a topic we have already touched on) and surrounding ourselves with the right suppliers. And it is precisely the second point that I would like to dedicate today’s post to. Also because – as we are now all realising –

suppliers today are no longer simple enterprises that provide us with something, but rather are actual technological partners, key figures in the entire production chain.

And, in a context such as this, the problem is quite simply that

 finding valid and reliable suppliers is becoming increasingly complex.

We realise, in other words, that it is very difficult to identify enterprises that can successfully adhere to our work philosophy;

who are, that is, able to maintain the right balance between high quality, competitive prices and efficient organization.

Where we find one or two of these characteristics, the others are often missing.

Frequently, for example, we receive non-compliant goods.
Our quality control – which, among the various activities, also deals with the verification of incoming goods from suppliers – is somewhat strict, yes, but it is also true that we operate in a sector where precision and high quality are essential conditions and, as such, we really have no choice in the matter.

It is easy to imagine, moreover, if we are dealing with a supplier that does not offer us competitive prices, we cannot then offer them to our customers, thus pushing us out of the market.
Not to mention the fact that

costs that are too high are not always a guarantee of a job well done.

Just as the fact that a supplier that offers very low prices should make us think why that is the case. Why, in fact, does this merchandise cost so little? Did the supplier miscalculate? Or is the quality poor? In both cases the consequences could be detrimental to us.

The same is applicable for what I have referred to as an efficient organisation, that is to say a company that knows its production potential and is therefore punctual in deliveries.
At MICROingranaggi we are continually trying out new suppliers but unfortunately we are struggling to find solid ones. For some time now we have even had a person engaged almost full time in checking that deliveries actually take place on time and, when they do not happen, in putting the pressure on late suppliers.

The alternative that we are therefore evaluating rather seriously is that of

further enhancing our production department so that we can carry out many of the processes we currently outsource to external companies.

But this second possibility opens up other questions. Namely understanding where to invest (technology and personnel) in a market that, as stated, at the moment offers very little visibility.

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