When selecting suppliers, e-commerce companies need to conduct a comprehensive analysis of suppliers, determine the types and number of suppliers to be investigated, and further understand the suppliers on this basis. Generally speaking, e-commerce companies need to consider the following factors when analyzing suppliers.
(1) Supplier’s price and cost
From a procurement perspective, e-commerce companies expect suppliers to provide a relatively competitive price, but this is not necessarily the lowest price in the market. The price provided by suppliers will affect the costs of downstream companies and have a negative impact on the overall competitiveness of the supply chain.
Therefore, e-commerce companies expect to understand the cost structure of suppliers and determine a win-win price in terms of supply time, quantity, quality, etc. After understanding the cost structure of suppliers, e-commerce companies can strengthen their control over procurement costs by collaborating with suppliers and adjusting the supply chain.
(2) Supplier’s quality level
Quality level is an important factor that e-commerce companies need to consider in the process of selecting suppliers, involving product ingredients, design style, characteristics, specifications, maintainability and durability. E-commerce companies need to evaluate whether suppliers have a stable quality control system and whether the products they supply can meet requirements in a long-term and stable manner.
(3) Supplier reliability
E-commerce companies need to evaluate the reliability of suppliers. Only by delivering goods continuously and on time can they ensure the normal operation. !E-commerce companies need to investigate the reputation, business stability and financial status of suppliers, and understand the supplier’s delivery history
(4) Supplier’s comprehensive technical capabilities
Suppliers’ comprehensive technical capabilities include the specifications and advancement of equipment, the potential of the technical team, the soundness and effectiveness of the management system, etc. E-commerce companies need to evaluate suppliers’ comprehensive technical capabilities. Suppliers with strong comprehensive technical capabilities can not only meet the current needs of e-commerce companies, but also provide guarantees for the future development of e-commerce companies.
(5) Supplier’s geographical location
Generally speaking, the distance between suppliers and e-commerce companies is positively correlated with the inventory of products. The closer the supplier is to the e-commerce company, the more conducive it is to timely delivery and on-time delivery, which can shorten the procurement cycle and reduce transportation costs
Suppliers’ rapid response capabilities.
In the current market, the life cycle of products is constantly shortening, and the speed of replacement is constantly increasing. E-commerce companies must respond to demand as quickly as possible. This response is not the response of the e-commerce company itself, but the response of the entire supply chain. Therefore, suppliers must have the ability to respond quickly and make timely adjustments to demand.
Tips
In addition to the above 6 common factors, e-commerce companies can also set other factors according to their own business goals, such as the supplier’s ecological environment, after-sales service, etc.