Three Key Questions for Responsible Supplier Selection
In the logistics chain of any company, suppliers – as the first link – play a strategic and fundamental role. Understanding that they are the ones who will provide the resources, goods, and/or products that enable certain economic activity, it is of utmost importance to choose them correctly and under responsible criteria; factors such as corporate image, process efficiency, and business profitability can be affected by such a decision.
However, this supplier selection process will not be the same for all organizations, as it will depend on the expectations and needs of each of them. For example, companies may place more or less value on factors such as long-term warranty offered, sustainability implemented in their processes, competitive benefits granted, the relationship between quality and price, among others.
While the choice of suppliers responds to each company’s factors, there are three key questions that all organizations should answer before choosing their suppliers to ensure a conscious and responsible decision:
How reliable is the supplier?
The first step will be to get to know the supplier very well. This way, it will be understood if their capacity meets the needs, if there are possible operational risks, if they comply with legal standards, and if they offer the necessary support to establish a relationship of mutual collaboration and transparency. It is important to prevent any gaps in information that could affect the quality of the input and, therefore, the corporate reputation of the purchaser.
To facilitate this initial approach, in the case of Colombates, for example, we ensure that our clients have the certainty not only that they are working with an established company that meets the necessary legal requirements but also that we offer the support of over 85 years supplying innovative packaging for various needs and industries. Properly conveying these characteristics will positively contribute to trust between both parties.
Do I identify with their corporate values?
Once the necessary information is obtained, the next step will be to define compatibility in terms of corporate philosophy. Considering that suppliers are part of the end product, being aligned and sharing certain values with them will facilitate the working dynamic and promote more stable relationships with a long-term vision.
For example, in the packaging industry, one of the most relevant elements often considered is sustainability. Companies that share this focus better understand the value of making a social impact in the territories where they operate, using sustainable materials and processes, and in general, implementing environmentally friendly practices. In this regard, at Colombates, we partner with the World Wide Fund for Nature’s Colombia chapter (WWF) to promote forest and ecosystem conservation in the country, and we collaborate with those who share our sustainable vision.
This affinity will enhance the actions taken in terms of sustainability and reaffirm the commitment of companies by implementing it even from the first link in the production chain.
What other elements support my decision?
There are also other indicators that can enrich the supplier selection process. These elements can include supporting certifications, testimonials from their current and past clients, success stories they have, and even the value proposition they promote that sets them apart from others in the market.
To bring it down to Colombates, we have the FSC® C023617 certification, which validates good forest management and guarantees that the resource comes from sustainable sources. Furthermore, we have strengthened the value proposition by supporting packaging redesign and giving significant importance to designing for each customer. Additionally, we have the capacity to develop innovations and efficient logistics, and we back both our experience and the quality of our packaging with several success stories across multiple industries.
Supplier selection, a risk or an opportunity
After addressing these three questions, organizations will have the necessary elements to evaluate their potential suppliers and make a more responsible decision, considering that if the selection is not correct, they may face various risks such as: lower efficiency in the production process, reduced profitability, credibility issues with their corporate values, shortages, among others. On the other hand, a supplier aligned with the expectations of the companies can lead to significant competitive advantages for them.
In any case, supplier selection is a process that all organizations undertake and should be given special importance. In the case of packaging, companies must ensure that the quality of these packaging solutions preserves their products in good condition, optimizes their logistics chain, and enhances their value proposition. In the end, the results will largely depend on the first link, in the hands of their suppliers.