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For SMEs in Mitcham, Morden, Wimbledon and the surrounding areas, navigating tough economic times has been a high priority, along with establishing reliable local or regional supplier relationships. This process is about more than securing stock. It’s about fostering a mutually beneficial agreement that provides peace of mind and long-term fulfilment for your business. 

Finding the right local suppliers can give you total reassurance in your operational capacity, while opting for the cheapest or most low-maintenance option can derail your venture entirely.

Why it’s important to consider suppliers carefully

A strong and transparent supply chain forms the proverbial backbone of your business’s products or services. Having quality suppliers on board ensures that you can source the right materials consistently, establish reliable delivery schedules that balance supply and demand, and find competitive prices that safeguard your profit margins.

What’s more, establishing a strong buyer-supplier relationship early on often leads to a greater understanding of each other’s bottlenecks or obstacles, particularly when times get busy. The increase in flexible payment terms for invoices also makes it more enticing for buyers to scour the supplier market.

For local businesses, their role in the UK economy is well documented, but making informed choices at the crucial growth stages is particularly important. One delayed shipment of goods or flagged issues following a quality assurance audit can spell disaster. It can not only disrupt your cash flow and overall returns, but it can damage your reputation within tight-knit communities where, it can be argued, that nothing is ever truly secret.

What does your business need from your suppliers?

The first step in choosing suppliers is to determine exactly what your business needs are. Consider aspects such as your industry’s quality standards, budget constraints, and delivery requirements. Are you seeking suppliers who can scale with your company’s growth? Do you require suppliers with specific accreditations or certifications for your industry?

Local businesses should give thought to supporting other like-minded suppliers and accessing competitive markets. For instance, a café in Wimbledon might source fresh produce from local growers whilst purchasing speciality equipment from overseas producers. Similarly, a franchise pub in Morden might opt to work with local breweries for guest ales, but, depending on their ownership structure, might be obligated to partner with specialists for premium lagers or ciders. 

Different industries will require bespoke approaches to supplier selection: 

• Restaurants and cafés might focus on working with wholesale artisan bakeries like Panificio Italiano, alongside local distributors. 
• B2C retail businesses might prioritise fashion wholesalers, packing suppliers and logistics partners. 
• Service-based businesses often need reliable technology partners and stationery suppliers.

Each business sector brings specific challenges and compliance obligations. While hospitality venues must navigate food hygiene laws, some businesses might only sell certified equipment to buyers.

This means that to find the right business suppliers, a considered and methodical approach must be taken.

How to find the best suppliers 

• Industry networks and trade associations: These often hold approved supplier lists, while trade publications regularly include directories of possible suppliers. The Merton Chamber itself offers excellent networking opportunities where fellow members can share supplier recommendations and pass referrals.
  
• Plenty of research: Online supplier directories provide a wealth of options, but it doesn’t stop there. Check company registration details, read testimonials from multiple sources, and look for evidence of work they have done.
  
• Local events and trade shows: These expos or conferences offer invaluable face-to-face opportunities to meet and assess suppliers directly. You can examine product quality, gauge their professionalism, and establish personal connections.

Narrow down your supplier list

Look for evidence of the following when shortlisting your possible suppliers:

• Financial stability – Suppliers facing financial trouble may pose trouble in the long run.
• Capacity – Ensure they can accommodate your current volumes and offer backup plans.
• Scalability – Can your suppliers meet growing demand, even during peak periods?
• Communication – How good are they at communicating? What is their average response time to questions or concerns?
• Transparency – Will they be forthcoming about any possible service downtime or obstacles? Have they made contingency plans in case that affects your business?
• Quality assurance – Request samples, visit facilities, and obtain documents of their product handling processes for peace of mind.

Building sustainable buyer-supplier relationships

The most successful relationships involve more than monetary figures and projections. Consider exploring suppliers who share your values around ethical business practices, community involvement and sustainability. Many business owners in Merton find that suppliers tuned into the local market can offer superior service and more tailored solutions. Therefore, it’s prudent to see how you can navigate challenges together, rather than as isolated parties weathering the same storm.

Let’s not forget the importance of backup options or contingency plans, however. That’s not to suggest that multiple active supplier relationships should be built simultaneously; identifying and pre-qualifying alternative suppliers who can step in during emergencies will prove fruitful should existing supply chains become entirely disrupted.

The key takeaway here is to start with a clear understanding of your requirements, conduct comprehensive due diligence, and prioritise suppliers who demonstrate the practices and values that matter to you. It’s never a one-and-done process; it’s an ongoing one. Regular reviews and assessments of your progress will ensure your supply chain continues to stay resilient to disruption and change as your business grows healthily.

Are you sharing valuable business advice like this with your audience? I help businesses communicate effectively on crucial topics like building strong supplier relationships, and would be happy for you to contact me (Chloe Miller), to discuss how I can elevate your content and engage your readers.