How can you ask the right questions to select the best supplier through market research?

Finding the best supplier for your business can be challenging, especially when you have many options to choose from. How can you compare different suppliers and evaluate their quality, reliability, and value? One way to do that is by conducting market research and asking the right questions to potential suppliers. In this article, you will learn how to use market research tools to select the best supplier for your needs.

1 Why market research matters

Market research is the process of gathering and analyzing information about your target market, customers, competitors, and suppliers. It can help you understand the current trends, demands, and opportunities in your industry. It can also help you identify and assess potential suppliers based on their capabilities, reputation, and performance. By doing market research, you can make informed decisions and avoid costly mistakes when choosing a supplier.

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Zalan R.

Team Lead Global Logistics @ OneScreen | Supply Chain Optimization | Strageic Sourcing | IT Procurement | Supply Chain Finance and Blockchain
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Trendy Trailblazers: Is our supplier on the same wavelength as the latest trends, ready to bring the hottest products to the market? Certification Masters: Can they breeze through certifications like they're collecting trading cards, making our products globally recognized?

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2 How to define your supplier criteria

Before you start looking for suppliers, you need to define your supplier criteria. These are the specific requirements and expectations that you have for your supplier. They can include factors such as price, quality, delivery time, service level, sustainability, innovation, and compliance. You should prioritize your criteria based on your business goals and needs. You should also set realistic and measurable standards for each criterion. For example, you can use a rating scale or a checklist to evaluate different suppliers.

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Antonio Goncalves

CEO @ procuro.ai • helping unlock more value from your contracts • AI-powered Procurement
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The whole team needs to get on the same page for defining the supplier requirements. Without the clarity in the beginning, it will cause confusion and unnecessary back-and-forth.

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3 How to find potential suppliers

Once you have defined your supplier criteria, you can start looking for potential suppliers. There are many ways to find suppliers, such as online directories, trade shows, referrals, and social media. You can use market research tools to search for suppliers based on keywords, locations, categories, and ratings. You can also use tools to compare and contrast different suppliers based on their profiles, reviews, and portfolios. You should create a shortlist of suppliers that match your criteria and contact them for more information.

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Zalan R.

Team Lead Global Logistics @ OneScreen | Supply Chain Optimization | Strageic Sourcing | IT Procurement | Supply Chain Finance and Blockchain
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Quality Virtuosos: Is our supplier a virtuoso in delivering top-notch products, hitting all the right notes in quality? Scalability Superheroes: Can they superhero up when demand skyrockets, ensuring we're never caught off guard? Innovation Wizards: Is our supplier a wizard in innovation, conjuring up the latest and greatest solutions in the industry?

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4 How to ask the right questions

Once you have contacted potential suppliers, you need to ask them the right questions to evaluate their suitability. It's important to prepare a list of questions that cover all your supplier criteria and address any concerns or doubts that you have. Additionally, open-ended questions should be asked to encourage suppliers to provide detailed and honest answers. Examples of questions include: how long they have been in business, what their competitive advantages are, how they ensure quality and consistency of products/services, how orders, deliveries, payments, and returns are handled, how customer complaints and feedback are dealt with, how performance and customer satisfaction are measured and improved, how changes in demand, supply, and market conditions are coped with, how compliance with relevant laws/regulations/standards is ensured, and how sustainability and innovation are incorporated into business practices.

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5 How to analyze the answers

After you have asked the questions, you need to analyze the answers and compare them with your supplier criteria. You should use market research tools to record, organize, and visualize the data that you have collected. You can use tools such as spreadsheets, charts, graphs, and dashboards to display and compare the data. You should also use tools such as surveys, ratings, and feedback forms to collect and analyze the opinions and experiences of other customers who have used the suppliers. You should look for patterns, trends, and gaps in the data and identify the strengths and weaknesses of each supplier.

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6 How to make the final decision

After you have analyzed the answers, you need to make the final decision and select the best supplier for your business. You should use market research tools to weigh the pros and cons of each supplier and rank them based on your supplier criteria. You should also use tools such as scenarios, simulations, and forecasts to predict and test the outcomes and impacts of choosing each supplier. You should consider the risks and benefits of each supplier and choose the one that offers the best value, quality, and reliability for your business.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Divya Mittal

|Procurement @Amazon Transportation Services | MIT Scale 2023 | Author |
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When reaching out to potential suppliers, crafting a thoughtful questionnaire is key. I focus on questions about their credentials, openness, and ability to adapt. I'm curious about their history, strengths, quality measures, logistics, customer care, and how they adjust to market changes. I analyze how they handle issues, measure success, and comply with rules. I also look into their commitment to sustainability and innovation. After gathering this intel, I use tools like spreadsheets and feedback forms to spot trends among suppliers and see how they fit my needs and customers' experiences.

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Zalan R.

Team Lead Global Logistics @ OneScreen | Supply Chain Optimization | Strageic Sourcing | IT Procurement | Supply Chain Finance and Blockchain
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Culture Chameleons: Will they adapt seamlessly to various cultures, ensuring a harmonious partnership worldwide? Time Zone Travelers: Can our supplier navigate time zones like skilled travelers, always in sync with our business rhythm? Support Champions: Are their support champions ready to swoop in and save the day whenever our team or clients need them? Warranty Wonder: Will their warranty leave us in wonder, creating a worry-free experience for our products?

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How can you ask the right questions to select the best supplier through market research?

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1 Why market research matters

2 How to define your supplier criteria

3 How to find potential suppliers

4 How to ask the right questions

5 How to analyze the answers

6 How to make the final decision

7 Here’s what else to consider

Supplier Sourcing

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How can you ask the right questions to select the best supplier through market research?

1

2

3

4

5

6

7

1 Why market research matters

2 How to define your supplier criteria

3 How to find potential suppliers

4 How to ask the right questions

5 How to analyze the answers

6 How to make the final decision

7 Here’s what else to consider

Supplier Sourcing

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