Sometimes companies looking for suppliers forget to focus on reliability. It's understandable that they want to find the best prices, but unreliable suppliers can end up costing more in reputation. It's best to work with vendors that can be counted on to keep supplies moving at a predictable pace. Here are tips for businesses in the cosmetic packaging industry searching for quality suppliers.
1. Know what you want
In order to rise to the challenge of finding the perfect fits for your supply chain, a business must know its needs and do plenty of research. Decision makers who must select cosmetic packaging partners need to avoid sales pitches that do not mirror the company's vision.
One of the keys to supplier selection is to understand the difference between strategic and non-strategic suppliers. The main difference is strategic suppliers offer essential products and services, such as valuable raw materials, that a business needs to operate. Non-strategic suppliers are more likely to provide low cost generic office supplies.
The most time-consuming aspect of supplier selection is research, which involves interviewing several people to find out about the vendor's experience and reputation. It helps to make a list of candidates then research financial aspects of each business, to make sure they have steady cash flow, good credit and a positive outlook.
For the most efficient results, it's best to avoid making agreements with a long list of suppliers. Limiting the number of sources will help keep the budget under control. Price is important, but reliability can mean more to the value of customer satisfaction.
2. Set your expectations
Before entering any partnerships with vendors, decide what the company expects from each supplier, to avoid getting trapped into making emotional decisions. Here are some of the most important as requirements of many managers:
reliability- quality
- monetary value
- strong service
- clear communication
- financial security
- long term potential
The reason reliability is a top priority is that the supplier's ability or inability to meet deadlines may affect credibility with customers. One thing many consumers care about is getting their products on time. Customers also expect products to be in top quality and anything less is considered unacceptable. Studies show that today's consumers are willing to switch to competitors after one bad experience.
Sometimes reliability outweighs pricing for certain necessary supplies that must be constantly renewed. When there are disruptions in the normal flow of business, the retailer must be able to communicate the issue with customers.
The most ideal relationship is a long term partnership in which both parties mutually benefit. This relationship should be built on genuine trust from doing plenty of homework and sharing business needs. The more partners know about each other's capabilities to help each other, the better. Acknowledgement of a supplier's importance, helps build loyalty between the two entities.
3. Draw up a Shortlist of Cosmetic Packaging Suppliers
The final stage of deciding on cosmetic packaging suppliers involves creating a short list of candidates. These finalists should each be able to serve the identified needs of the company. A quick way to find out is to ask the follow questions for each supplier:
- how long has the supplier been in business?
- is the supplier able to deliver desired goods or services on time?
- does the business have a positive long term outlook?
- which companies recommend them?
- are they listed by trade associations or government organizations?
Conclusion
Price is often thought of as a top concern, but it doesn't always have to be. In order to maximize a position with suppliers in the cosmetic packaging industry, it's best to work with more than one, but not a long list. Four or five candidates narrowed down to three or four vendors works for many businesses. Backup suppliers are helpful in times of shortages or when a company needs to choose between reliable sources.
Disclaimer:
The postings in this blog section do not necessarily represent Desjardin's positions, strategies or opinions.
References and Further Reading
- More posts on Cosmetic Packaging, by Alex Cosper and Dawn M. Turner
- Is It a Cosmetic, a Drug, or Both? (2016), by the U.S. Food and Drug Administration
- Regulation (EC) No ´1223/2009 on Cosmetic Products (2009), The European Parliament the the European Council
- ISO 22715:2006: Cosmetics -- Packaging and labelling (2006), International Organization for Standardization
