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Essential Articles for Buyers
The internet has made the process of finding suppliers easier and more
dynamic with B2B websites which are offering supplier company profiles,
and also online catalogs and other necessary details. But finding the
right supplier is a question, beyond physical boundaries. Given below
are some of the useful knowhow for a buyer while sourcing from other
countries.
Finding Right Supplier
In online contracts, finding a reputable, committed and quality
oriented partner is the most important thing to become a successful at
an import transaction. The undermentioned few tips will help in finding
the right supplier:
- If possible, buy goods from those suppliers who have been
certified by the International Standardization Organization (ISO)
criteria or by any renowned certification organisation.
- Make it mandatory of asking for and checking business references
from the supplier.
- Check out the financial strength and infrastructure so that the
supplier can handle the bulk order easily.
- Payment mode which suits your comfortability.
Commercial Agreement
After selecting a perfect supplier, next comes the contractual
agreement between the two parties. The following are some of the
elements to take care of :
- A clear description of the goods. It should specify the type,
make, quality, quantity and contents of the component.
- Next comes the pricing. It should specify the amount, the process
of calculation, the currency and the shipping cost should be
included or not.
- The delivery details include the date or the period of time on
which the delivery is to be done, the mode of delivery, how the
delivery is deemed to be made and the place of delivery.
- The payment terms, the most important part of the transaction. It
specifies the time of payment, whether the payment is to be made in
one lump sum or in installments, when the installments are due, and
where the payment is to be made.
- The next important thing to be taken care is the packaging and
labeling. It specifies the types of packing, the size of cases, and
specification of the appropriate packing and/or special labeling in
case of fragile goods or goods being sensitive to the climatic
changes.
- The invoicing details specify the time when invoicing will occur,
and the procedure for invoicing.
- The shipping details include the mode of transportation, it is
arranged by buyer or seller, place of shipment for the goods, place
of arrival for the goods, and who will bear the costs of shipping
and cargo insurance.
- Other terms which are to be checked are who is responsible for
insuring the goods while in transit from the seller to the buyer,
the amount of insurance to be carried if the seller is responsible
for it, who is responsible for its cost, any guarantees or
warranties, and at last the cash discounts.
- One more thing to be noted is the validation. It specifies about
who decides when the order has been fulfilled and who checks the
quality and quantity of the goods.
Quality Control
After the order is placed, the importer needs to take measures to
ensure the quality of the goods before it is being shipped by the
exporter. Depending upon the size of the order and the level of
customization, it will be beneficial to take the service of a third
party quality control specialist.
In case of customised goods, generally the samples are made and sent
for approval before full production starts. Quality sampling of the
products made during the production runs, or the final random product
inspections are frequently used tools of the quality control. It can be
easily undertaken by an independent third party. For complete
protection, importers can also stipulate quality control measures which
is passed as conditions in the L/C.
Maintaining Good Relationships with Suppliers
Here are few tips of how to maintain a healthy relation with suppliers:
- Always pay on time.
- Discuss vendors' needs and methods of doing business.
- If a vendor or service provider isn't meeting your expectations,
discuss it immediately.
- Seek suppliers' suggestions.
- When you're the customer, act the way your best customers do.
- Strive to give suppliers enough time to do a great job.
- When you find a good vendor, be loyal.
- Understand vendors' need to make a profit.
- Avoid unreasonable demands.
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