How to Choose a Supplier

Feb 5, 2010: What factors do you consider when choosing a supplier of CNC machined parts, special washers, Custom Washers, fabricated components, laser cutting, metal stampings or Coatings? For many buyers it seems that the only thing that matters is per piece price. However, as we all know, focusing solely on per piece price ignores the many factors that are undeniably present when accurately accounting for a part's total acquisition costs.

How much does it really cost you to assemble prints and specifications for a quote, distribute the material to multiple sources, receive the quotes and then follow up on the tardy and/or incomplete responses, place the order, check and/or change the order's status, receive late/early/incomplete or defective parts, track down incomplete shipping documents and certifications, etc?

How much does it really cost when the parts you ordered are stuck in transit and you now have order emergency replacement parts to avoid a "line-down" situation?

How much does it really cost you when you get a "low-ball" quote during the initial quote process and face significant, unwarranted price increases on subsequent orders forcing you to start the quote/purchase process all over again?

How much does it really cost you to receive and process out of tolerance parts or to chase down missing/inaccurate shipping and certification documents?

How much does it cost you when your supplier doesn't know or doesn't share with you how minor tolerance alterations or purchasing alternatives could result in huge cost savings?

The list of procurement activities and the real, hard-dollar costs associated with each activity goes on and on.

Savvy purchasing professionals know that many factors make up the total acquisition cost for a part. Factors they focus on when choosing a supplier include:

• Relationships - do they actively work to develop a partnership to provide you with imaginative solutions or are they just another supplier?

• Expertise - do they actively work as your partner to help you reduce your costs and improve your processes? For example, do they simply take your plans as provided, or do they let you know that if you made a few small changes, that you could get the product at a significantly lower cost? Do they help work with your designers to make the part work better in your production system? Do they work with you to combine multiple parts into one thereby reducing assembly and ordering costs?

• Timeliness - do your quotes and parts arrive on time? Do they get back to you when promised? How long do parts take to arrive? How fast can they process a rush order?

• Quality - do they have a history of consistently producing product at or better than the print calls for.

• Accuracy - are your orders accurate, your invoices correct, and your instructions followed to the letter?

• Special Services - do they provide additional services like custom-labeling, special packaging, kanban, consignment and design assistance?

• Multi-service supplier - are they just a stamping house, a fabricator or a machine shop or can they supply all your needs, with one-stop shopping?

As the premier supplier of Special Washers, Metal Stampings, CNC Machined Parts, Fabricated Components and Assemblies, and DACROMET ® & GEOMET ® coatings, Matenaer Corporation is proud to say that hundreds of customers after considering these factors choose us as their low total acquisition cost supplier.

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