Finding The Right Suppliers For Your Food Operations' Needs

By Melissa Lind, contributing writer

One of the do or die facets of operating a business in the food industry is the selection of ingredient suppliers and food vendors. There are a lot of factors that go beyond simple pricing. Do you know what your needs are? Are your vendors fulfilling them?

Having a clear idea of what you are looking for includes asking some important questions. Considerations should include:

• Sourcing — is local sourcing a part of your brand identity, or will just getting the right product suffice?
• Timing — is your product dependent upon seasonality?  Are your ingredients available year round? Will off-season availability have a significant impact on quality or price?

Needless to say, financials will be a significant factor. Price isn’t always the highest consideration, but it is very important. When making a final decision, it is wise to contrast and compare:

• Price — how much do you want to pay? How much are you willing to pay?
• Price Increases — how much room in your end-price is there to accommodate unexpected price increases?

Delivery of goods is also essential. Your company needs it ingredients when it’s time to make final products, not before and not after. When selecting a supplier be sure to check out the following:

• Schedule — what is the supplier’s delivery timing?  Does the company only deliver once a week or do you need daily deliveries?
• On-Call Delivery — should an unexpected need arise, can your supplier accommodate you or are orders only processed on a schedule?

Knowing The Supplier’s Suppliers
In the food industry, safety is of utmost importance. You are responsible for guaranteeing the safety of your product, as well as consumers, which means guaranteeing your supplier is using appropriate safety measures. How much do you know about the suppliers’ cold chain and practices within it?  Where does the supplier get its supplies?  Most food supply chain experts advise being able to easily identify sourcing at least one level up from your vendor.

Certifications
What certifications or accreditations does your potential vendor have?  A lack of awards doesn’t mean that they aren’t a good supplier, but they need to have at least the minimum of accreditations. For example, if you are claiming your product is organic, your supplier needs to be registered as an organic food supplier and have processes in place to ensure compliance.

Other Clients
Before throwing all your eggs into one supplier’s basket, it is advisable to learn what other food industry clients your potential vendor is serving. A look at the supplier’s current client list can tell you a lot. If the company primarily serves large multinational clients, they will likely meet minimum standards. However, if you are a small, independent food maker, you might not get the service you need. Conversely, if the potential supplier serves mostly small, independent businesses and your business is larger, the supplier may not be able to meet quantity needs.

Supplier’s Staff
The Vendor’s staffing may not seem to be high on your list of things to consider, but it should be. If your prospective vendor has a high turnover, it may mean that training is an issue. This information may be hard to obtain, but they may be proud of their staff and willing to discuss, so ask.

Are There Skeletons In The Supplier’s Closet?
This seems simple, but one overlooked area may be solved by a bit of simple research. A Google search is essential, but look at background checks using agencies to find out about judgments, customer feedback, and any regulatory issues.

Remember you are the customer but they are looking at you as well, this is a two-way street. Companies don’t want new clients who don’t fit with their business. Doing a bit of homework will help you identify potential pitfalls before you open discussions. This includes taking a look at your reputation and qualities as well. Choosing the right vendor can make or break a company, but covering your bases with some research and careful consideration will help you make the right decision and come closer to success.