As businesses grow things change. For example the company that supplied you with 10 units per month may not be the best when you need 1,000 units each month.
Your sales are going from strength to strength, you have the right team in place to efficiently operate your business – now you need the right supplier contracts. The indication that you are looking for is how many problems do you have with supply? Late delivery, incorrect deliveries, unacceptable failure rates – these are examples of what can go wrong with your current suppliers and indicate that you need to overhaul that area of your business.
Can your current supplier deliver the higher quantities at the required quality? Can they deliver to the new locations you have opened?
Maybe you have developed new products or new ways to produce the existing offers – in which case you need new supplier arrangements.
What new requirements has your business growth created, and how does that change things with your suppliers? Do you need larger quantities than when you started the business, or maybe you now need deliveries to several production sites instead of just one? Maybe your capability has changed and now you need component parts instead of fully functional sub-assemblies? (Or maybe the other way around?)
Maybe you need a better “Partnering” relationship with a single supplier, or perhaps your business will be better served by establishing supply contracts with several suppliers for each item? The key is what your business is best served by?
Creating a new product and having the gumption to get out and sell it requires a certain skill set, handling the larger team and all the “people skills” stuff is another skill set, and handling the financial side of the business is yet another.
Adding these new skills to your team will continue your journey to a profitable business on auto-pilot. You’ll have the full set of skills in four more posts.