How to Find Suppliers for Business? Hire the Best!

Finding the right supplier for your business and building solid supplier relationships is key to maintaining a smooth, cost-effective supply chain. It ensures you can consistently provide high-quality products and services to your customers. On the flip side, unreliable suppliers can increase the risk of supply chain disruptions.

However, while it may seem straightforward, a lot goes into the supplier selection process to find suppliers who can contribute to the success of your retail supply chain management. 

So, today, we’ve simplified the job for you. In this post, we’ll look into different types of suppliers and everything about finding good suppliers. We aim to ensure you embark on your entrepreneurial journey on solid footing.

What Is a Supplier?

A supplier is an individual or business entity that provides the products, materials, or services necessary for another company's operations or production. They serve as the source of essential resources required for a business to deliver its products or services.

In the context of an eCommerce business, a supplier is the entity responsible for manufacturing or distributing the products you offer for sale on your online store. 

Let’s say your eCommerce store specialises in selling electronic gadgets. Then, the companies or manufacturers producing these gadgets are your suppliers.

The Crucial Role of Suppliers in Your Business Success

Suppliers are the backbone of your business. Their role goes far beyond supplying goods, and here's why:

Reliable Product Availability

Suppliers ensure a consistent supply of products that equips you to meet customer demand without disruptions.

Quality Assurance

Reliable suppliers have high-quality standards. Hence, their products or materials reflect positively on your brand, leading to customer satisfaction and loyalty.

Competitive Prices 

Suppliers aim to offer retailers the most competitive prices in a way that retailers profit from their sales. Two key reasons for this: compliance with legal regulations and the desire to get repeat business. 

In any case, it contributes significantly to the business’s profit margins and overall financial health.

Innovation and Growth

Suppliers are experts in their market domains and come with an intimate understanding of the latest trends. Using their innovation potential, called supplier innovation, you can find new products that help you quickly adapt to a rapidly changing business landscape.  

Customer Satisfaction

Timely delivery and quality products from reliable suppliers are essential for customer satisfaction, which, in turn, drives repeat business and referrals.

Competitive Advantage

Exclusive partnerships or unique products sourced from reliable suppliers can give you a competitive edge. 

Before moving on to finding suppliers for your business, let’s quickly understand the various types of suppliers.

5 Most Common Types of Suppliers (With Pros and Cons)

There are different types of suppliers in the supply chain—

1. Dropshipper

A quick 101 check—dropshipping is an order fulfilment method in which a retailer outsources procuring, storing, and shipping the products to a dropshipping supplier. 

A dropshipping supplier is a company or individual that provides products to an online store without the store needing to keep those products in stock. 

When a customer places an order, the supplier ships the product directly to the customer, eliminating the need for the store to manage inventory or handle shipping.

Finding a dropshipping supplier is a convenient choice for retailers looking to start an online business without the storage or the funds for bulk stock.

Pros of Dropshipper

• Lower overhead costs by eliminating the need for storage facilities and direct product shipping.

• Low starting costs due to minimal investment in facilities or resources.

• No inventory costs, reducing financial losses from lost or over-ordered products.

• Ability to test and offer diverse products without upfront inventory or investment.

• Sell on various platforms, from your website to Amazon and social media.

• It doesn't tie you to a specific location for order fulfilment.

• Handle more orders without increasing your inventory storage.

Cons of Dropshipper

• Intense competition and possible stock shortage due to low entry barriers.

• Limited control over product quality.

• Difficulty differentiating from competitors and branding challenges. 

• Price competition may erode profit margins.

• Lack of control over order processing, shipping times, package design, etc.

• Stock availability updates may be inaccurate.

• You can offer only limited special offers and promotions.

• Supplier errors may cause fulfilment mistakes and poor quality.

2. Manufacturers

You can procure products for your business directly from either manufacturers or vendors. 

Manufacturer is the goods manufacturing supplier who produces them from scratch. They offer these products to a wide range of customers, including consumers, wholesalers, distributors, retailers, and even other manufacturers who use these goods as components in creating more advanced products.

Pros of Manufacturer:

• Better control over product quality.

• Lower prices when sourcing directly from the manufacturer.

• Opportunities for customised products.

• More control over production for innovative and profitable products.

• Potential for agreements on regular and bulk orders.

• Optimal profit margins due to best pricing and customisation options.

• Greater control over quality standards.

Cons of Manufacturer: 

• Most manufacturers prefer bulk orders with minimum order quantity (MOQ).

• A substantial commitment typically preferred by experienced sellers.

• Requires significant initial investment and storage capacity.

3. Sub-contractors

​​Subcontractors in a supply chain are third-party individuals or companies that the main supplier or manufacturer hires to do specific jobs. They might create parts, offer special services, or handle particular tasks to keep the production process running smoothly.

Pros of Sub-contractor:

• Suitable for handling smaller quantities of goods.

• Cost-effective when it comes to shipping and transportation.

Cons of Sub-contractor:

• Potential limitations on the size of orders they can handle.

4. Distributors/Wholesalers

A wholesale supplier or distributor is a B2B business that purchases bulk quantities of products directly from manufacturers and resells them to businesses like yours. 

While they sell the products at slightly higher prices, you can still negotiate the best prices. That's because they do bulk buying. The more you purchase from them, the lower your cost per item becomes.

In fact, finding suppliers for small businesses in the form of wholesalers is a great alternative as they may not meet manufacturers' MOQ. Wholesalers offer B2B fulfilment and bridge this gap by offering accessible pricing options.

You typically pay for your products upfront when you order from a wholesaler. These items are then shipped directly to your chosen location. Be prepared to have storage space available for your inventory. 

Pros of Wholesaler:

• Consistent product availability.

• Discounted pricing compared to retailers purchasing directly from manufacturers.

• Access to a diverse range of goods for easy product range expansion.

• Some wholesalers drop ship and deliver straight to end customers.

Cons of Wholesaler: 

• You need to buy in bulk to benefit from wholesale prices, which may lead to excess inventory or cash flow challenges.

• Storing bulk inventory requires space and can incur additional costs.

5. Importers

Importers are excellent suppliers for wholesale businesses, small companies, and retailers. They specialise in exporting and importing products from overseas manufacturers.

Here's how it works: Importers purchase products from manufacturers in one country and transport them in bulk to another. They then sell these products to various businesses and retailers, catering to both large and small orders.

Working with importers makes the most economic sense for larger orders, which helps reduce shipping costs. It's also a trusted choice for many wholesalers and distributors who depend on importers for their goods.

Pros of Importer:

• Importers purchase products in bulk from overseas manufacturers and divide them into smaller quantities, catering to the needs of smaller businesses.

• Cost-effective shipping solutions help you save on logistics expenses and simplify sourcing processes.

• Many importers arrange product delivery either for free or at minimal costs to their clients.

• Access to a wide range of products from manufacturers worldwide, benefiting retailers and businesses.

Cons of Importer:

• The product costs may be higher, especially for large orders.

• Goods may have a longer turnaround time, causing potential delays in product availability.

How Do I Find Suppliers for My Business? A 7-Step Breakdown

Finding good suppliers for your business is essential to keep it running like a well-oiled machine. Here's a simple, stepwise breakdown of the process to find a supplier for your business. 

Step 1: Know Your Business Needs

In the world of supplier selection, knowing your business inside out is the essential first step. This clarity ensures you find the perfect supplier fit, aligning with your unique goals and requirements.

Start with Your Business Model

Begin by taking a deep dive into your business model. What kind of enterprise are you running? This initial evaluation sets the stage for finding the ideal supplier. 

For instance, wholesalers often are your best bet if you're in the retail game. You can benefit from the They're your go-to source for a variety of bulk products catering to your retail needs.

Whereas manufacturing businesses usually lean towards direct sourcing from manufacturers. It ensures you get the specific electronic components or materials required for your production process.

While finding suppliers for an eCommerce store, you might work with a combination of manufacturers, wholesalers, and importers. Manufacturers provide unique products, wholesalers deliver a diverse array, and importers bridge the gap between global manufacturers and local businesses.

Business Size Matters

Smaller businesses often prefer to find wholesale suppliers or importers, while larger enterprises can venture into direct manufacturer relationships.

Geographic Considerations

Think about your geographic scope. Are you sticking to finding local suppliers for quick access, or are you ready to find international suppliers? Your choice here impacts everything from shipping costs to delivery times. 

Ethics and Sustainability

For businesses deeply committed to ethics and sustainability, supplier values must align. Find a supplier who shares your passion for eco-friendly practices and fair labour conditions.

Industry-Specific Needs

Don't forget your industry's unique standards and regulations. Ensure your chosen suppliers meet these specialised requirements.

You lay the groundwork for fruitful supplier relationships management by fully grasping your business needs. This understanding ensures you connect with suppliers who can seamlessly cater to your demands, fostering growth and operational efficiency.

Step 2: Find Suppliers Online 

Before you can start talking to suppliers, you need to find them. But finding the right supplier for your business isn't as easy as a simple Google search. To find suppliers, you'll need to do some deeper digging. Thankfully, there are tons of channels to give a substantial base of information and choose the right one for your business.

Recommendations

Reach out to business acquaintances, friends or family for advice. They can provide honest assessments of suppliers based on their own experiences.

Online Supplier Directories

Several online databases list suppliers and relevant information to help you quickly find suppliers. 

Some of the most popular online platforms for finding good suppliers are—

• Australian Wholesale Network Directory

• Supplynation

• SaleHoo

• >Alibaba

• AliExpress

• DHgate

Trade Associations

If your needs are specific to a particular trade or industry, explore relevant trade associations. They often have resources to connect you with suitable suppliers.

Business Advisors

Local business-support organisations, such as chambers of commerce, can offer guidance on finding suppliers. Their websites may have directories with verified suppliers. 

Trade Publications

A simple yet effective strategy is to get magazines or newsletters targeting retailers in your industry. The advertisers in these publications are often product manufacturers or distributors. So, you'll find a wealth of options along with up-to-date contact details by checking out the ads in the magazine or on their website. 

Local and International Trade Shows

Sometimes, finding suppliers in Australia can be as simple as attending retail trade shows. These trade shows are industry exhibitions where wholesale retailers and manufacturers showcase their latest products. 

They offer a direct line of communication between retailers and manufacturers or wholesale distributors. Plus, you can build a list of potential wholesalers while attending these shows. Many participants also offer exclusive deals during these events, making them ideal, especially for new retailers.

If you're considering importing products for your retail venture, consider overseas trade shows to find suppliers overseas. These events let you see the product you're interested in, saving you the wait for samples.

Google to find Suppliers

While we did say that finding suppliers isn’t as easy as Google search, we didn’t say that Google can’t help you in this quest. After all, it’s a digital age. Do the following to harness the power of Google to find the perfect supplier fit:

Dig Deeper in Search Results

Most supplier websites are not as optimised for search engines as they should be. So, continue beyond the first page of search results. Some of the best wholesale suppliers might lurk on pages 2, 3, or beyond. Click through to these pages to see what gems you might find.

Play with Keywords

Try experimenting with different search keywords when finding suppliers in a specific niche. Let's say you need a wholesale t-shirt supplier. Mix it up with variations like "Wholesale t-shirts," "T-shirt wholesaler," "T-shirt distributor," "Wholesale supplier for t-shirts," "Buy t-shirts wholesale," and "T-shirt supplier." This tactic can reveal suppliers you might have otherwise missed.

Add Your Location

To find local suppliers, add your location to the search query. This narrows down the results to suppliers in your vicinity, making logistics and communication more manageable.

Explore Related Searches

Google's SERPs provide valuable insights through related search queries. Scroll down to discover what else people are searching for. This can lead you to additional potential wholesale suppliers or help you refine your search.

Step 3: Do Your Due Diligence

Now that you've compiled a list of potential suppliers, it's time to dig deeper and conduct your due diligence before contacting them. 

Conduct research and aim to shortlist up to four or five candidates. This way, you save time for you and potential suppliers and ensure productive interactions with those best suited to meet your requirements.

Before initiating contact, start by gathering as much information as possible about the supplier online. Dive into each potential supplier's history, reputation, and supplier performance. Explore their website, scrutinise customer reviews, and engage in industry forums to gauge their reputation and offerings. Keep an eye out for any red flags or negative feedback.

Furthermore, assess the financial stability of your prospective suppliers. You want to ensure they are financially sound, as a financially unstable supplier may pose risks to your business continuity if they encounter financial troubles.

We'll soon discuss various factors to consider when researching a potential supplier. But before that, here's a simple checklist to help you find a supplier for your business. It outlines 16 essential questions and things to consider during your supplier research. 

1. Can I find a local supplier?

2. Can I find an overseas supplier?

3. Is the supplier financially stable and reliable?

4. How long have they been in business?

5. Do other companies recommend them?

6. Do they consistently have what you need in stock?

7. How quickly can they ship?

8. Are their terms and conditions fair and reasonable?

9. Is the price aligned with the product/service quality?

10. Is the supplier's workplace in Australia safe and equitable for their employees?

11. Do the products pose any environmental or community risks?

12. Are the products sustainable or recyclable?

13. Do you have a sufficient number of potential suppliers?

14. What's the contingency plan if a supplier leaves the business or faces sourcing issues?

15. Do you possess enough supplier alternatives?

16. Can you swiftly find a new supplier through your industry association?

Step 4: Contact Potential Suppliers and Request Quote 

Once you've identified suppliers to source products from, it’s time to get in touch. Unlike larger enterprises, you may not have the luxury of a manufacturing manager, so you must communicate directly with suppliers. This can be done through various means, such as phone calls, emails, or text messages. If you're working with local manufacturers, in-person meetings are also an option. 

Ideally, start by calling the supplier directly, as it lends credibility to your inquiry. Speaking on the phone establishes a personal connection beyond just sending emails. While it may take some time, reaching out to three to five different suppliers to compare offerings and get the best deal is good practice. If you prefer email communication, ensure your message is detailed and precise.

Feeling a bit apprehensive about reaching out to new suppliers? Here are some key points and typical questions to guide you to find suppliers. You can always follow up with additional questions via email if needed.

• Clearly state your identity and your company's location.

• Ask about the supplier's background and request references to verify their credibility.

• Specific product details you're interested in.

• Specify the product details you're interested in sourcing from them.

• Inquire about the supplier's expertise and experience in customization if needed.

• Ask about pricing, cost per unit, MOQ, lead times, and available shipping options.

• Enquire about their return or refund policies.

• Check if they can offer exclusivity for your product.

• Inquire about any fees associated with preparing equipment for production.

• Find out who covers the costs for incorrect or defective items.

Transparency is key to effective communication. Clearly express your expectations and requirements. Remember that this is a potentially beneficial partnership for both parties. Suppliers want to work with trustworthy, reliable, and professional businesses. Assure them of your commitment by discussing your business plans and providing links to your eCommerce store. Show that you're well-informed and committed to working together.

Lastly, when evaluating potential suppliers, prioritise those who are responsive and enthusiastic about working with your business. If a supplier is slow to reply to emails or provide samples, it may raise concerns about their reliability and suitability for your needs.

Step 5: Order Samples

After initial communications with potential suppliers and evaluating their responses, the next step in finding suppliers for your eCommerce store is ordering product samples. Before committing to a full order, requesting and testing product samples is essential. It allows you to assess product quality, verify specifications, and ensure the supplier meets your expectations.

Once you receive the samples, carefully inspect them for quality, functionality, and adherence to specifications. Compare them to your control samples if you have them.

Keep detailed records of your sample evaluation, including any discrepancies or issues you encounter. Date and sign the samples you receive, designating them as control samples for future reference.

For instance, imagine you receive a package from a manufacturer, and upon inspection, you notice that the product colours are entirely different from what was initially agreed upon. In this situation, you can refer to your control sample to demonstrate that the products you received do not meet the established standards. This process helps you maintain the quality and consistency of your products, ensuring customer satisfaction and business success.

In case of any concerns about the samples, promptly communicate with the supplier to clarify expectations and lead to improvements if necessary.

Based on your assessment of the samples, you can decide whether the supplier meets your quality and product standards. If the samples meet your criteria, you can confidently move forward in your supplier choice.

Step 6: Negotiate Supplier Contract

Negotiation is the art of reaching an agreement that satisfies both you and your supplier. Contracts often have some non-negotiable elements, but many aspects are open to discussion. 

Here's how to navigate the negotiation process effectively while finding suppliers.

Price and Volume: 

Begin by discussing the price per unit and how it might vary with the volume of your orders. This is where you can secure better deals for larger quantities.

Order Terms:

Clarify the terms of your orders. How frequently will you place orders, and what will be the minimum order quantity?

Payment Conditions: 

Define the payment terms. Will you pay upfront, upon delivery, or within a specified timeframe after receiving the goods?

Mutually Beneficial: 

Emphasise the potential for a mutually beneficial relationship. Highlight the promise of repeat business if they agree to your terms.

Clear Communication: 

Use straightforward, effective communication. Listen actively, summarise key points, and ask questions to ensure everyone understands each other.

Professionalism:

Maintain a calm and professional demeanour throughout negotiations. It sets a positive tone and helps build a strong partnership.

Seek Expert Advice: 

Seek advice from professionals, like lawyers or business advisors, if needed. Ensure that all agreed-upon terms are documented in a formal contract. This legal document protects both you and the supplier.

Remember, negotiation while finding suppliers is about achieving common ground and not squeezing suppliers for the lowest price. So, when negotiating, try to see things from the manufacturer's perspective. Strive for a win-win solution where both sides profit and stay happy, building a robust, long-term relationship.

Step 7: Place Your Order

Once you've finalised the supplier contract, it's time to place your order. Here's what you need to keep in mind:

Verify Order Details:

Before submitting your order, double-check that all the details align with what you've agreed upon with the supplier. This includes product specifications, quantities, pricing, delivery schedules, and any other terms mentioned in the contract.

Payment: 

Be prepared to make the necessary payment as per the agreed terms. Some suppliers may require an upfront payment, while others offer options like net 30 or 60, allowing you time to settle the invoice.

Order Confirmation: 

After placing your order, requesting an order confirmation from the supplier is a good practice. This serves as documented proof that both parties agree about the order's specifics.

Tracking and Communication: 

Stay in touch with your supplier during the production and shipping phases. Request tracking information for your order to monitor its progress and ensure it arrives on schedule.

Quality Control: 

Upon receiving the products, conduct a thorough quality check. Compare the items to your control samples (if you've used this method) to ensure they meet the agreed-upon standards.

Addressing Issues: 

If you encounter any issues or discrepancies with the delivered products, communicate promptly with your supplier to resolve them. An efficient resolution process is vital for maintaining a positive supplier relationship.

How to Build Thriving Relationships with Suppliers?

Maintaining a strong, long-term relationship with suppliers is essential for sustainable operations.

Here are key recommendations to build trust with suppliers: 

• Appoint one person within your business, whether you or a team member, to be responsible for regular and direct communication with your supplier's account manager.

• Keep the lines of communication open and transparent. If there are delays or changes to orders, inform the supplier promptly. 

• Maintain ethical conduct and be reasonable in your demands. Fairness and integrity in your dealings will strengthen your relationship.

• Identify and promptly communicate any product or service problems to your supplier to find solutions efficiently.

• Stay on top of payment milestones, dates, and conditions to ensure timely payments. 

• Inform your supplier proactively if your business encounters internal challenges affecting your supplier relationship, such as payment delays.

• Keep supplier-related problems within your business or discuss them only with trusted professionals like accountants, legal advisors, or business mentors.

• Schedule formal meetings with your leading suppliers every 6 to 12 months. Use these meetings to review your relationship, discuss mutual improvements, and align future plans.

• Maintain detailed records of all supplier transactions, deliveries, and supply-related reports. This data is valuable for future negotiations, contract renewals, or terminations.

5 Essential Supplier Selection Criteria You Should Never Ignore 

There are several key factors to consider to find suppliers that meet your business's needs and standards. Here's a comprehensive list of what you should be looking for in a supplier:

1. Price and Product Quality

A low price doesn't always signify low quality, nor does a high price guarantee superior quality. 

So, it's vital to recognize that opting for a low-quality supplier may lead to extra expenses for returns, replacements, and time lost. Delays can also jeopardise your customer relationships. Moreover, passing on subpar products to customers can harm your business's long-term reputation. 

When finding suppliers, strive for a balance between price and quality to ensure lasting success.

2. Minimum Order Quantity

Find out the supplier's minimum order requirement. Ordering in small, frequent batches (often called 'just in time') can help avoid tying up excessive working capital and storage space. However, extremely small orders may have higher production or delivery costs, potentially increasing the overall price.

3. Location 

Consider the supplier's location, which can significantly affect your business relationship. Finding suppliers overseas can bring cost savings, but it may not be suitable for small quantities, quick turnarounds, or flexibility. Given the current supply chain disruptions and material shortages, local suppliers could be a more reliable option for a partnership.

4. Accessibility

When evaluating potential suppliers, observe how they interact with you; it can be a valuable indicator of their future performance. Take note of their communication skills on the phone and via email. Do they respond promptly to your inquiries and return your calls promptly? Assess whether they fulfil their commitments, such as sending requested samples by the promised date. These aspects can offer insights into their reliability and professionalism.

5. Scalability 

Ensure that your potential supplier can accommodate your anticipated future needs. Assess their flexibility in handling both small-quantity and high-volume orders. If your requirements are expected to increase significantly over time, your initial supplier choice should be capable of scaling alongside your business. 

Conclusion 

Finding good suppliers might require jumping through a few hoops, but it’s all well worth the effort. This guide will help you make this process as smooth as possible.

To enhance your odds of finding a reliable supplier, start by clearly defining your requirements, inquire about crucial details, and maintain an open-minded approach during the evaluation process.

Equally important is safeguarding your interests by conducting thorough due diligence to confirm the legitimacy of your chosen vendor. As your partnership with the supplier evolves, periodically assess the relationship to ensure it continues to align with your business needs and goals. 

Following these strategic steps, you can establish a robust and enduring supplier partnership, a cornerstone for your business's growth and success.

A reliable supplier needs a dependable logistics partner by its side

Finding a supplier who is reliable is undoubtedly crucial. Their ability to provide high-quality goods on time and at competitive prices forms the backbone of your supply chain. However, an often underestimated but equally vital piece of the puzzle is a trustworthy procurement logistics partner.

Imagine your supplier delivers top-notch products, but they arrive late, damaged, or fail to reach their intended destinations efficiently.

Enter PACK & SEND, your comprehensive logistics solution provider. With a national network and international delivery expertise, we offer the essential support required by businesses like yours. 

Whether you need to transport goods across the country or send them to international destinations, we've got you covered. Our Logistics Solutions Include:

Business Logistics: 

We handle the everyday details of delivering your products to customers, ensuring your operations run smoothly. Our corporate services extend to supporting your promotional events and large-scale projects, making us the ideal choice for product launches and travelling trade shows.

Warehousing & Distribution: 

Streamline your inventory management, order fulfilment and distribution, and storage with our 3PL and distribution services. 

Specialised Logistics: 

Some products require special handling, and we're up for the challenge. Whether it's dangerous and restricted goods, fragile items, or delicate IT and electronic equipment, we have the network and expertise to handle your specialised logistics needs with care. 

Make PACK & SEND your logistics partner and streamline your courier and freight business delivery needs. Contact us at 1300 668 000, reach out through our website, or visit your local PACK & SEND Service Centre to get started.

Frequently Asked Questions (FAQs)

What types of suppliers are there, and how do I find the right supplier for my business?

There are various types of suppliers— manufacturers, wholesalers, dropshippers, and importers. To find the right supplier, consider your business model, size, geographic scope, industry-specific needs, and ethical considerations. Align the type of supplier with your specific requirements.

What is the best way to find a supplier?

The best way to find a supplier is by conducting thorough research. Start by identifying your business needs. Explore online supplier directories, ask for recommendations, attend trade shows, and use search engines effectively. Evaluate potential suppliers based on factors like quality, reliability, and cost-effectiveness.

How do I find suppliers in Australia?

Finding suppliers in Australia can be done through various methods:

• Online supplier directories like Australian Wholesale Network Directory and Supply Nation.
• Recommendations from industry peers, friends, or family.
• Trade associations related to your industry.
• Local business-support organisations like chambers of commerce.
• Trade publications and industry-specific magazines.
• Attending local and international trade shows.

Why is a logistics partner like PACK & SEND essential for businesses working with suppliers?

A logistics partner like PACK & SEND is essential because they ensure reliable, efficient, and cost-effective delivery of goods from suppliers to businesses. They help companies maintain smooth operations, on-time deliveries, and customer satisfaction by providing comprehensive logistics solutions tailored to specific needs.