Selecting Suppliers

Once you have a list of potential suppliers you need to ask for quotations. In making these requests it is essential to ask for or give specifications for the products you require and request any special requirements in respect of packaging, labelling and delivery. If you have your own purchasing conditions, you should attach a copy of these to your request quotation. Potential suppliers should also be asked to send copies of their sales and technical literature and samples where relevant. If you can give an indication of the quantities you are likely to want, frequency of deliveries and possible growth of your business, this will encourage suppliers to make a realistic quotation, especially if they grant discounts or rebates for minimum quantities.

Once you have received offers from various suppliers, either in one country or from various countries, you must decide which supplier or supplier’s best meet your needs. At this stage you may also need to check the supplier’s specification to see if it meets UK standards. The British Standards Institution can assist you with most manufactured goods, regardless of weather or not they are for industrial use or for sale to retail consumers. If you import products that do not meet UK standards, particularly in respect of health and safety regulations, you may find you are unable to sell them.

Should you wish to act as an official agent or distributor for a supplier who already sells in the UK without representation, you should find out about him from existing purchasers or his goods in the UK. Some suppliers, for example of spare parts for the motor trade, may voluntarily provide information, giving names of some of their existing customers in the UK. If they do not currently sell in the UK, you may wish to consider becoming their UK agent or Distributor, thus entering into a formal agreement with them to promote the sale of their products.

Assuming you have identified suitable suppliers you will wish to check further on their financial viability. Some of the major UK clearing banks may provide you with some information on overseas companies. Alternatively, you may be able to obtain the information from one of the credit rating agencies such as Dun & Bradstreet.