How to Choose the Right Supplier

How to Choose the Right Supplier

Supplier “X”, a new player in the home furnishings market, is largely unknown.  Supplier “Y” is established with distribution throughout the marketplace.  Which one do you choose?

 TOP 10 Criteria

  1. The Right Look. Will the look improve your selection and increase excitement on your floor, given the likely fact that existing product may need to be removed?
  2. Quality. Does it meet your standards for where you wish to place the product in your line-up?
  3. Saleability. Without looking at cost, would the product fetch a price point within your line-up that fills a need?
  4. Raw Cost. Does the cost before freight make sense based on what you believe you can sell it for?
  5. Landed Cost and Freight. Does the cost after freight make sense for your operation?
  6. Margins. Will carrying this product improve your overall gross margin?
  7. MAP (Minimum advertised price). If there is MAP pricing, do the margins improve your overall margins?
  8. Online pricing. What is the range and degree to which the product is priced by others online?
  9. Required investment. What are the requirements for the initial investment in terms of floor space, number of SKUs and dollars.
  10. Reorder lead time. How long does it take on average for stock orders vs custom orders.

Living Room Decorating

“Add up all the results and you have a weighted ranking for selecting suppliers. The ones that have the highest totals in the areas that matter most to you are the ones that you should carry.”