A very important decision that must be
made early in the process of starting your any business requiring
the acquisition of electronic components is the selection
of a supplier(s). Care should be given to this selection.
The initial selection can prevent future misunderstandings,
and even an unnecessary change of affiliation. Dealers should
research their potential distributors (background history).
It is also important that an alternative list of electronic
component suppliers has been considered, in case the primary
supplier is unavailable.
Before making contact with a potential supplier, it is important
that you understand what you are looking for in one. Consider
the following points:
- If merchandise can be returned, who pays the freight
and is there a restocking charge? (i.e. To cover the supplier's
administrative and handling charges for putting it back
into their inventories)
- How broad or complete is the assortment offered by the
supplier? Does the supplier stock electronic components
and computer semiconductors in bulk. Can the supplier serve
as an OEM source? Are "Opportunity Buys" (deals,) if offered,
available on a regular or occasional basis?
- How competitive is the wholesaler's pricing policy?
- What is the chance that the supplier will ship your order
- What is the turnaround time on orders from the time that
they receive the order to the time that it is shipped.
(i.e. how much lead time do you have to allow for on an
- What is their preferred method of shipping goods, or
are various methods of shipment available? Note: The choice
of how electronic components are shipped depends to a large
extent on who is paying for the cost of the shipment.
- Are prices quoted Free On Board (F.O.B.) warehouse or
delivered to the store?
- If credit has been granted, are cash discounts available
to encourage early payment of credit, (i.e. 2% - 10 days,
Net 30?) (i.e. If you pay the bill in 10 days, you will
receive a 2% discount, otherwise, the balance is due in
- If it is an available option, at what point will orders
be shipped prepaid?
- Is prepaid shipping an available option?
- Are there volume discounts available for when buying
- Where is the supplier located? Who else do they supply?
- Are there credit terms available and at what point may
you be able to access them? (i.e. you will usually to have
to establish a working relationship on a cash basis first
before supplier credit may be offered.)
- Can defective, damaged, non-selling, or overstocked merchandise
be returned or be "stock balanced" (substituted) for saleable
- Does the supplier offer advertising support? (i.e. possibly
in a co-op form where each of you may share the cost of
an ad and how strong is it)
Just in time delivery is accessible to all and DF Consulting
can help you realize this efficiency.