Qualifying your vendor base is an important part of your business and a crucial key to getting recognition in the industrial sector. Even though you set up a business without qualifying your vendor base in the industry you cannot go up. Multiple engineering companies in India travelled up to the path of success in industrial B2B due to multiple strategies. Do you also want to know a few strategies or practises so you can successfully establish a well stable vendor base and grow your business exponentially? This blog is for all those people who are not aware of these strategies and are looking for perfect guidance regarding the same. And for those who are not aware of terms like B2B or vendor base do not worry because this blog will explain everything in detail.
What is meant by B2B and Vendor qualification?
B2b is a business to business exchange of products and services. With B2B there is a close relationship with the customer. Business to business marketing is a small vertical market and has a few customers related to them. B2B sales are higher-ticket purchases usually costing low. B2B is less price-sensitive and is mostly driven by needs and budgets therefore it tends to be very rational. B2B requires consultative selling which means selling based on understanding a client’s need and developing a relationship of trust sometimes from a two-level sales organisation including the seller sales force and distribution sales force. The size of orders is large and the number of buyers is small. The level of risk and complexity of decision in B2B ranges from medium to high.
A vendor is a company or agency or source where we extract goods and services from. Vendors quote prices and the customers place their orders as per their requirement and settlement with the vendors. Vendors make reliable and harmonious relationships with their customers. Customers look for vendors with a strong base and recognition so they do not have to compromise on the quality and get reasonable prices. Vendor qualification is a process that is carried out to ensure if the vendor is meeting their specific requirements and if it can provide the customers with the necessary best quality products and services based on their needs.
There are a few best practises or strategies that can help the company qualify their vendor base in industrial B2B:
- Plan an evaluation method
This is the most important method because after evaluating each aspect of the vendor, a more rational decision can be taken and the areas can be looked upon for improvement if needed. The quality of the output can be very well determined by the quality of the input. Critical evaluation is proven to be the most crucial and useful step while looking for a supplier or vendor. It is important to evaluate the quality consistency with proper identification for the qualification of the vendor.
- Identifying the vendor critically
Identification of vendors should be performed based on different criteria such as their past performance and the quality of the product they sold. Stay up to date with their present reviews as well for a better experience. These aspects are important to take into account so you do not compromise on the goods or services you obtain from them. Getting to know about their previous customer experiences and customer satisfaction for easy selection.
- Gathering information about the category of product the vendor sell
It is important to know your vendor well and the kind of product they sell so you do not waste your time looking for the services and goods you need in the wrong place. Shortlist vendors after researching about the products they sell and then it is fine to run a quality check in person.
- Know the customer experiences
Getting to know about their previous customer experiences and customer satisfaction for easy selection. Past experiences should always be considered before trusting any vendor because vendors can say anything but their services can only be trusted based on their past experiences and relationships with other customers.
- Communicate clearly before making a deal
Clear communication is a much-needed step that customers need to take. If you communicate clearly with the vendor the futuristic mishappenings and misunderstandings can be avoided. It is always better to have point to point conversation so that it is not misleading for any of you, there is always clarity and then you reach on to some decision.
- Maintain good relationships
The key to any successful relationship or business is trust, consistency and mutual understanding. Maintaining a good relationship with the vendor can hold you close to them and in some way or the other it can benefit you for your future deals with them. There is nothing more helpful in B2B than a healthy relationship between the vendor and the customer because then there will always be a sense of responsibility maintained throughout.
- Having Transparency
It can not be denied that transparency of goods, timeline and quality between the vendor and customer is helpful. It builds trust and there is no chance of any dispute between the two. You will always be more clear about the services they will offer and it creates a mutual understanding between the vendor and customer.
- Vendor Risk assessment
You should run a risk assessment before finalising a vendor. Look for multiple vendors, study their quotations and then choose one out of them with the least risk or no risk at all. You cannot put your money, goals or input on sake by getting into a deal by risking it with a vendor without proper assessment. Look for cost-effective vendors without compromising the quality of the goods or services you are buying from the vendor.
Enggpro is a leading global marketplace and best engineering company in India that helps you to connect with multiple vendors and suppliers. Our executives run the quality check and evaluation process personally and then list the vendors on our website. We have listed reliable contacts of the vendors on our website that promise best quality, services and timely deliveries. We also let you compare the goods and services provided by the vendors so you can make a choice based on proper evaluation and not a hypothetical one. If you are looking for reliable vendors with quality services then visit our website and find the best one for you today itself.
