2nd Sep, 2020
The success of any vendor and dealer depends on the quality of their suppliers. The world of batteries is no different and, for the development and growth of a business, a supplier needs to deliver top quality batteries. Enertec understands the significance of this business requirement along with the ramifications of an incorrect choice of supplier. With that in mind, we will look at some of the key indicators that would determine if the battery supplier should be selected or not. The information presented here would be valuable for both old vendors looking to switch suppliers and new vendors who are just starting out with their business.
Cost is one of the primary parameters that one needs to consider when selecting a battery supplier. Like any business, battery dealers and vendors are often locked in stiff competition with one another. Customers are always comparing prices of batteries and aiming to get the best possible deal for their money. That is why it is essential for the supplier to provide competitive rates for their batteries to ensure that a profit will be made when making sales to customers. Otherwise, the vendor will start with a handicap and may need to invest in marketing to convince their customers to choose their product over the competitors’ products.
The complementary point of consideration to cost is quality. There is a constant trade-off between cost and quality. The challenge is finding the right balance that allows you, the dealer, to create an attractive package for the customer. That is why one may need to consider factors like quality to cost ratio. The battery should offer good performance and have an acceptable lifespan so that the investment could be justified by the cost. The battery market is incredibly versatile especially when it comes to lead acid batteries. You could find different options at different price points. The specifications and quality of the battery should match its respective price range.
Safety is a broad term and it could mean different things for different stakeholders within the battery supply chain. As a vendor, the general practice of safety standards by the supplier is highly important. This means that their batteries should not be prone to failures, which can put the staff of the dealers and customers at risk. For example, the lead acid batteries should not have a reputation of leaking acid (which is corrosive in nature). Moreover, the safety standards are not limited to the batteries itself but extends to its handling as well. This means that the batteries need to be properly packed and transported in a correct manner to avoid any unnecessary hazards.
The dealer-supplier relationship is an integral part of a successful business eco-system. This relation normally depends on the service that a supplier provides to the dealer. This includes approachability of customer service representatives in terms of modes of communication and their conduct. A supplier should be accommodating when something goes wrong. If there is a bad batch of batteries, customer support should be apologetic and willing to get the situation rectified as soon as possible. Moreover, the supplier should be responsive when contacted via phone, email, chat etc. This shows that the supplier is committed to providing the best possible service and would be readily available in case of any issues.
Social responsibility is at times ignored in business circles but, as upstanding members of society, we need to practice and promote it. That is why, when selecting your supplier, it is pertinent to ensure that the supplier is socially responsible. This means that they should adhere to labour laws and do not discriminate among employees on racial and religious grounds. Moreover, their activities should display consciousness towards environmental issues. This could include proper waste disposal and minimisation of resource wastage. Giving preference to socially responsible suppliers helps to promote such values and, other suppliers are encouraged to adopt them.
Ease of doing business plays a significant role when deciding on a supplier. This means that the interactions are hassle free for the dealer and, does not result in any unnecessary roadblocks. There should be minimal paperwork and complications when placing orders. It should be easy to get order updates and, if needed, office visits are arranged without any problems. Suppliers that make use of technology are often more convenient to deal with. They may have ERP and inventory management systems in place that may provide the dealers with the necessary access for carrying out automated transactions. With the fast-paced nature of today’s world, dealers need such options to streamline their business operations as a whole. So, it makes sense to seek out convenient suppliers.
Risk is ever-present in all business activities and suppliers are not immune to it. That being said, good suppliers have the necessary risk mitigation measures in place that ensure that there aren’t any delays in meeting deadlines. For instance, if a shipment of batteries is unable to reach the dealer due to closure of roads for any reason, they should have made the allowance for it by mapping out alternate routes with the necessary considerations for meeting the ETA. Such suppliers not only protect their own business interests but are also helpful in improving the sales of dealers.
Business is often filled with fluctuations in demand trends. That is why a supplier needs to have the necessary agility to handle such situations. They should be capable of delivering the shipments to meet excessive demands as soon as possible. Normally, any supplier with some foresight maintains a certain degree of excess inventory to handle spikes in demands. A good way to gauge the agility of a supplier is their track record with their existing clients. If their feedback regarding such scenarios is positive, it would be fair to assume that the supplier is capable of reacting quickly and handling emergency orders with great efficiency.