Question

A supplier that tells a potential buyer about its financial problems may accelerate its own demise. Potential buyers will shy away from the supplier while existing buyers will begin to qualify new sources. While our parents told us that honesty is the best policy, it is a policy that is sometimes buried deep in the back of a supplier's playbook. It is not that the supplier's personnel are inherently bad or dishonest. They are simply practicing self-preservation. What are some tools and techniques that buyers will use to qualify a supplier prior to doing business with them?

Answer 1

How to qualify a supplier from a buyer's point of view(supplier selection):

1. The buyer should get his or her desired price levels(cost effectiveness) from the seller with good quality of goods or services
2. The seller should have a consumer friendly nature along with prompt service delivery
3. It should be convenient for the buyer while doing business with a seller, e.g. - location preference
4. Estimation of risks associated with the seller and also assessing if the seller is socially and ethically responsible.