Thursday, 6 August 2015

Supplier selection for your Air Conditioning Company

Good suppliers play an effective role in the progress of any company. You also need to select your suppliers through careful assessment of each available option because different suppliers have different characteristics. Therefore, doing a little research will allow you to lay a solid foundation for your operations ahead.  Selecting the best supplier option for your Air Conditioning Company includes a scrutinizing process similar to every other company who chooses its suppliers.
Identify the potential suppliers for your company
Get a list of all the suppliers in the industry mentioning all their attributes and select a few that match most with your criteria.
a. Do consider the new suppliers in the market – Keep a close eye on the new players in the suppliers market because these new suppliers might have new technology to offer, they will offer lower prices in comparison to the older ones and they will be more flexible in their contract terms and conditions.
b. Follow a specific supplier selection process for the older players – As far as the old players are concerned a particular supplier selection process is followed. This process includes scrutiny of references of these suppliers, their financial status, availability of capacity, ability to follow the specifications and their quality assurance certifications.
c. Create a list of pre-qualified suppliers – This is called the supply base and the list will be referred whenever it’s time to award short-term contracts for your AC Company. In this manner there will be a competition for the contract award and the supplier who meets your requirements more consistently will win your contract most consistently as well.

Request for information
After a list is developed its time to contact the suppliers in a formal manner and ask about their goods and services. This may include a price quote, or general information about the products offered.
Negotiation process
This process involves different offers made by the suppliers to you and vice versa. Whatever is given up by one party is gain for the other one.
Terms & conditions for contract
After gaining all the intelligence about the market and getting the price quote the next step is to decide the contract terms. This include the payment and non-payment conditions, service level, specifications, quality standards and duration of contract.
Evaluation of each option and award of contract
After carefully analyzing each option and getting all the information and negotiations you will choose the best supplier for your Air Conditioning Company.
Monitoring suppliers
The process does not end at the contract award, in fact the real process has begun because you have to assess the performance of your supplier and more importantly, critically evaluate your company’s supplier selection process.
In short the most common criteria to choose the best supplier for your Air conditioning Company are;
i. Previous experience
ii. Past performance
iii. Quality Assurance standards certifications
iv. Potential capacity
v. Ability to meet the specifications
vi. Financial stability
vii. Availability of technical support
viii. Track record for improvements
ix. Time & Cost efficiency
x. Professionalism in business dealing

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