A great supplier is one who retains a larger than average percentage of existing customers and finds it easier than competitors to attract new customers. But what is it that makes them successful? It’s not just price.
To find out how suppliers get rated as great we asked 67 companies to tell us “What do your suppliers do for you?” We wanted to discover why particular suppliers were selected and what they had to do to remain as a supplier.
The bottom line is that the three top factors from the survey were: Quality, Expertise and Price, in that order. It was very clear that having the “best” product or service was rarely a deciding factor because frequently the company had no basis on which to determine which offering was actually “best”. This makes other factors such as quality customer service not just good to have but critical to retaining customers and attracting new ones. The other top factor were: Flexibility, suppliers processes and timeliness.