How to Conduct Due Diligence When Choosing New Businesses to Partner With

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Choosing suppliers or other businesses to work with can be a challenge. Sure, if it doesn’t work out you can move on to another, but to save time and money you want to pick correctly the first time.To pick correctly, you need to do your due diligence. Due diligence can be as small as comparing different providers, to sending someone to the factory floor to ensure that they uphold human rights and living standards. Transparency is the name of the game both for companies and consumers, so getting all the necessary information first can help you make a sound decision.

Choosing the right businesses to work with is slightly different than choosing a business partner. Always follow these six steps before you sign on:

1.    Look Them Up Online

You want the companies that you work with to be openly transparent. Even if the item you are looking for is something as simple as baling wire, you want to ensure its quality and impact on social and environmental systems is a positive one. Rather than outsourcing to a sub-par and cheap company out east, for example, you could choose quality and help support the American economy by buying your baling wire from BalingWireDirect.com.

2.    Contact Other Companies Who Work With Them

The best companies often advertise their most famous clients. Contact these clients and see if they would be willing to divulge their experience with the supplier in question. As they have used their services, they will have a good, honest opinion on the quality of service and quality of product.

3.    Request Further Information

Once you have information from these clients it is time to go back to your top choices and request more information directly from the company. Ask about their suppliers, about their ethos, about their business model, financials, and so on.

4.    Cross Compare Competitors

You will want to cross compare competitors to make a firm decision on which one is best for you. Though you never want to automatically choose the cheapest supplier, you do want to find the happy medium.

5.    Meet With Them Directly

Once you have narrowed down your list to one or two suppliers, it is time to meet them directly. If you can, visit their manufacturing floor so that you can see for yourself the process. This is very important if you want to produce sustainable items, and are looking for a supplier overseas.

6.    Work With The Best Choice

Once you have all this information, it is finally time to make your decision on which supplier you will want to work with. You will want to keep a few options open, of course, and use that as a bargaining chip to try to get a great deal for your repeat business. There is no guarantee this will work, however. When you vet companies like this closely and choose the one with the greatest record for environmental and employee protections, you will need to pass on the cost.

 

 

 

 

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