There’s no denying that a preferred supplier list can be extremely beneficial to have in place. Having a list of suppliers you can call upon for all of your sourcing requirements can make the process much easier, especially due to the trust established with long-term vendors. However, it can sometimes be beneficial to take the time to look outside of your PSL when sourcing, particularly if your PSL has been in place for some time.
Here are three great reasons to source outside of your preferred supplier list:
Reason 1: You Don’t Become Reliant On Your PSL
It’s important to expect the unexpected when it comes to your suppliers.
Having a preferred supplier list is great, provided that you don’t become reliant on it - easier said than done when you have a bank of trusted suppliers at your fingertips. However, it’s important to expect the unexpected when it comes to your suppliers - for instance, if they also work for a number of other buyers, then you may sometimes find yourself in a position where they don’t have any capacity to give you.
This can have a knock-on effect on the entirety of the supply chain and leave you in a position where you could be letting down your own customers. This is why it’s so important to occasionally look outside of your PSL and ensure that other suppliers understand the needs of your business and vice versa. For instance, if you work in the aerospace sector and require suppliers who are accredited to AS 9100, then this can be very difficult to source for at a moment’s notice. Whilst the suppliers on your PSL may already have the required credentials, it is always good to know of outside sources you can turn to if you need to.
Having a preferred supplier list that you’re reliant on can also prove problematic from a financial standpoint. If your current supplier suddenly drives their prices up but you’re depending on them for your upcoming projects, you could find yourself running at a loss.
Reason 2: You Become Aware Of What Else Is On Offer
There may be additional value-adds that external suppliers are able to offer to benefit your business.
Ever-changing technology and innovation means that the industry is constantly evolving. If you use the same suppliers for all of your subcontracting needs, then it can be difficult to understand the wider scope of the industry and what it currently offers. The latest machines mean that many suppliers are able to pass significant cost savings onto their clients; subsequently, it can be a worthwhile exercise to benchmark your preferred suppliers from time to time.
It’s not all about price either. There may be additional value-adds that external suppliers are able to offer to benefit your business - for instance, KAN-BAN and JIT can both prove to be extremely valuable resources.
If it’s been a substantial amount of time since you last put your projects out to quote, then why not consider what else is out there?
Reason 3: Putting a Contingency Plan Into Place
By looking outside of your PSL, you may find some great suppliers who have the capabilities and capacity to step in if need be.
It’s one thing for your supplier to have no capacity to spare, but it’s quite another if they go out of business altogether. Unfortunately this has happened to many unsuspecting manufacturers, leaving them panicking as they attempt to find a replacement at short notice.
This can result in a replacement being found who is not an ideal match for your business, as is often the case when sourcing in a hurry. As the supplier hasn’t had the time to fully understand your company and what you value, there is also a much larger probability of errors and mistakes occurring. This is why it’s far better to have a contingency plan in place ahead of time, just in case the worst should happen.
By looking outside of your PSL, you may find some great suppliers who have the capabilities and capacity to step in if need be, as well as potentially assisting with any surplus work should your current supplier find themselves overloaded.
How Can Qimtek Help?
Our Drag, Drop, Source! service is 100% supplier-funded and could help to save you time and money.
We completely appreciate that sourcing outside of your preferred supplier list can be a time-consuming process; however, it doesn’t have to be! Qimtek’s Drag, Drop, Source! service is quick and easy to use, providing you with quotes from interested suppliers directly to your inbox.
Instead of taking the time to contact multiple suppliers individually, our sourcing team will handpick a list of subcontract engineering companies who match your required capabilities and send them your project. Interested suppliers will then send you their quote directly, leaving you to focus on other tasks. What’s more, we’ll happily exclude any companies who are already on your PSL - just let us know if there’s anyone you don’t want us to contact.
Our Drag, Drop, Source! service is 100% supplier-funded and could help to save you time and money. For more information, please call our sourcing team on 01256 394 500 or click below to get started.