Established contacts with suppliers. How to organize wholesale supplies of goods from China

Finding a reliable supplier is the most important stage in organizing a retail business. At first, all entrepreneurs in the field of trade face this problem. Buy goods abroad or look for suppliers in Russia? How not to lose your money when concluding contracts with foreign suppliers on the Internet? Read about this, as well as about the most common mistakes made when choosing suppliers, in our article.

“How to find a supplier?” - this question torments hundreds of novice businessmen, since arranging the supply of goods at a low price for sale at a higher price is a serious task. Many entrepreneurs, in a rush to launch their business as quickly as possible, make the wrong choice of suppliers, enter into contracts with unreliable companies, which subsequently leads to disruption of the trading process, loss of profit, and sometimes even closure of the store. Where to find a supplier? How to eliminate errors when ordering goods? What requirements must a supplier of products for a retail store meet? We present to your attention some useful tips on how to find a supplier.

How to find suppliers: visit specialized exhibitions of goods

In large cities of each region of our country, a large number of exhibitions are held, in which manufacturers of a wide variety of goods participate. This can be clothing, shoes, food, household appliances, gifts, souvenirs, cosmetics, furniture, industrial and other goods. Large suppliers and manufacturers participate in exhibitions and fairs in pursuit of two goals - to sell goods at retail to end consumers and to find large resellers to sell batches of products through retail stores. The exhibition is thousands of products grouped by type, price, quality, manufacturers, where every visitor can find their supplier.

Entrepreneurs also need to attend exhibitions, especially international ones, in order to track current trends in a particular area. Specialized exhibitions are an excellent way to establish contacts with several suppliers of goods at once, enter into preliminary agreements and get acquainted with the range of products presented. Often companies from other regions of the country or countries also participate in exhibitions - by cooperating with them, you will be able to purchase goods that differ from the range of competing companies in your region. By visiting exhibitions, you have an excellent chance to compare the quality and prices of goods from different manufacturers, the terms of delivery of goods, without wasting time searching for the necessary information.

By visiting specialized exhibitions and communicating directly with company representatives, you immediately establish yourself as a businessman with serious intentions, which means that specialists from the supplier or manufacturer will be more willing to cooperate with you - they are also interested in expanding the channels for selling their goods.

In order not to make a mistake when choosing a supplier company participating in a specialized exhibition, check the information with which retail stores it cooperates with in your region or in a neighboring one. Then, information about the reliability of the supplier can be clarified directly from colleagues or competitors - if there were any problems with this company, they will certainly tell you about it.

Many businessmen note that it is really easy to find reliable suppliers at specialized exhibitions throughout the country. When communicating with employees of a supplier company, it is important to immediately build partnerships so that your company or store is perceived not as a one-time buyer, but as an associate and business comrade. By establishing mutually beneficial cooperation, in the future you can count on receiving discounts from the supplier or priority delivery of the best goods at competitive prices.

We are looking for the right suppliers: we are studying Russian wholesale online stores

Today, the most popular “place” for searching for suppliers of goods is, of course, the Internet. And an excellent option for entrepreneurs who at first are afraid to take risks by ordering large quantities of certain products from abroad on the Internet is cooperation with the largest Russian wholesale online stores of consumer goods. They, as a rule, work with dozens of countries around the world and have a wide range of products. Finding a supplier among such companies is easy.

For example, the Russian company Sima Land. On the website of this company, any retailer will be able to find hundreds and thousands of necessary products, including exclusive ones, which can be purchased for further resale. These include household goods, clothing, children's goods, electrical goods, souvenirs, games, jewelry, tools for construction and repair, and many other things. Regular clients of such wholesale online stores in our country are retail chains and small retail specialized stores, as well as educational institutions - schools, colleges, kindergartens and other various organizations.

Such a supplier company has several advantages. Firstly, there is no need to order delivery of goods from abroad - this eliminates the risk of losing money. The extensive network for organizing transportation of such wholesale online stores allows resellers to save on delivery - often it is free. This is profitable and convenient for owners of retail stores, since goods are delivered safely and securely within the shortest possible time.

Secondly, thanks to the wide assortment of such a supplier, you can immediately and in one place order various types of goods in minimum quantities. For example, bed linen or children's clothing. That is, there is no need to enter into agreements with several suppliers at once, since all the necessary goods can be purchased from one. The development of the assortment of large Russian wholesale online stores is carried out by employees of these enterprises, who are guided by the needs of customers and the demand for certain goods. As for prices, in such enterprises they are really affordable and not much more expensive than when buying goods from abroad. Wholesale online stores work directly with manufacturers of goods, while avoiding markups, and delivery of goods in large quantities and well-thought-out logistics help reduce the company’s transportation costs. According to retail businessmen, finding suppliers from such firms is one of the best options for retail trade.

An undeniable advantage for a supplier from among wholesale Russian online stores of goods is the quality control that is carried out by employees of these companies. Companies such as Sima-land, for example, have their own warehouses and offices in other countries. The company's local employees have the opportunity to carefully select manufacturers, control the quality of products purchased in bulk and control the purchasing process.

Some large Russian wholesale online stores have their own “real” retail analogue stores - in the huge areas of hypermarkets of the same name, anyone (including a novice businessman who is looking for a supplier) has the opportunity to personally evaluate the quality of goods.

By collaborating with such suppliers, you no longer need to purchase goods abroad, there is no need to risk money by pre-paying for goods from an unknown foreign supplier, whose products you have not even seen or “held in your hands”, as well as worry about the delivery methods of the purchased goods and its “customs clearance” and the availability of quality certificates. All of the above tasks are solved by employees of the largest Russian wholesale online stores of consumer goods. Finding a supplier among such companies today is not difficult.

Foreign suppliers: we order goods from abroad

Working with foreign suppliers is considered among Russian businessmen to be quite complex and costly, but the most common “scheme”. Most often, the choice of entrepreneurs who own retail stores falls on China. As you know, the vast majority of things and goods around us are made in China. The prices for the products purchased there are really low, and the choice of goods is unlimited, which means you can earn significant amounts of money from the resale of goods. Chinese manufacturers are true “experts” in creating and selling consumer goods. But Russian entrepreneurs should be wary of fraud and deception from Chinese suppliers.

The easiest option for finding a foreign supplier is on the Internet. On the World Wide Web you can find both a one-time supplier of goods and a long-term partner. For example, the well-known trading platform from China, the site “aliexpress.com,” brings together dozens and hundreds of sellers of Chinese goods on one portal. Here, in a huge range of products, you can find the most suitable offer for yourself - in terms of price and quality. Here you can buy phones, accessories, tools, clothes, jewelry, both wholesale and individually.

In order to protect buyers of goods on large sites, there are protection methods - a refund if the product was not received, was not received on time or did not correspond to the description. You can return goods to the seller to a warehouse in Russia without giving any reasons. Now the company has representative offices in our country in almost every region; you can pay for goods and choose a delivery method (pickup or delivery directly to your store) yourself.

One of the disadvantages of working with such suppliers is that you can only buy consumer goods on the websites of Chinese manufacturers, but you are unlikely to find exclusive items or highly specialized goods here. It is also not uncommon for the ordered product to arrive of poor quality or the wrong type or size. The process of returning money or goods is quite lengthy. Another disadvantage of such suppliers is the inability to “touch” the product and evaluate its quality. The buyer (especially of wholesale quantities of goods for resale in a retail store) acts “blindly”, purchasing a “pig in a poke” with an advance payment.

“We look for suppliers on the Internet by entering the name of a certain type of product in English into a search engine. This is the simplest option. After that, go to various websites of suppliers of Chinese goods and ask questions, businessmen advise. “Communicate with representatives of companies via Skype, always agree on delivery times, methods of payment and return of goods.”

Today you can search for a supplier of goods virtually in simpler ways. For example, many online companies offer special services for selecting reliable suppliers. You discuss with the company manager the types of goods that you would like to order on the Internet, and they, in turn, look for a supplier for your store or check the reliability of the companies with which you plan to cooperate. They will compare prices for you, check the availability of quality certificates, photographs of goods, and find all the contacts of the supplier you are interested in. Also, such companies undertake customs clearance of goods, money transfers, and intermediary services. All this can make the work of a novice entrepreneur easier, but these services, of course, are paid.

Where else to find a supplier: product catalogs

If you need a supplier, consult product catalogs. They come in two types - online catalogs and traditional printed publications. Thanks to online catalogues, systems for searching wholesale suppliers, anyone can find both a distributor and a manufacturer of goods. Wholesale companies in our country post information about themselves on these services, talking about the range of products, prices and publishing all contact information. Thanks to this, you can directly contact the organization you are interested in and negotiate the conditions for purchasing products.

A good example in this vein is the wholesale supplier search system “OptList.ru”. Here you can find products of various categories from companies from different cities of the country for free, and also leave your request for the supply of a particular product - and the supplier will find you. Here you can find both a reliable supplier of tires for cars, mobile phones, and potato producers - you will find any necessary product in the right quantity thanks to such services.

Printed catalogs or product magazines are less popular in the age of modern technology. But it is not uncommon for manufacturers of highly specialized products to publish information about their enterprises on the pages of various catalogues.

How to find a reliable supplier: we work directly with product manufacturers

Working directly with product manufacturers is certainly beneficial. Primarily due to the ability to purchase goods for resale at their purchase price. But, as you know, manufacturers prefer to work with wholesalers, and are less interested in retail trade enterprises.

A good option for grocery store owners is to cooperate directly with agricultural producers, farmers, and small companies that produce quality goods under their own brands. For example, semi-finished meat products, dairy products. Manufacturers in the regions are always interested in new partners, including representatives of the retail trade.

When considering working directly with manufacturers, look for items or products that are made directly in your area. You will be able to purchase them at the lowest prices, not spend money on delivery and resell them at a higher price. The only negative is the large number of competing stores that sell identical products.

Don’t be intimidated by the opportunity to work directly with one or another manufacturer of goods from any city in the country as a supplier for your retail store. They are interested in selling their products, just as you are interested in buying them for resale. You can also buy goods directly from a manufacturer from another region of the country together with several retail stores in your region. In this case, you can carry out periodic delivery of the range of goods you need, saving money on cargo transportation.

Today, you can look for a reliable supplier of goods for your store in different ways, but this is a truly important stage that requires a competent approach and an objective long-term assessment of the supply market.

How to build relationships with suppliers. How to choose a reliable supplier. What methods of working with suppliers exist? How the enterprise regulates the terms of work with suppliers.

How relationships and work with suppliers are built

There are two types of supplier relationships.

Some enterprises follow the simplest path - when negotiating, they take a tough position. The goal of this strategy is to obtain the most favorable conditions. In this case, relations between firms are based on the principle of economic feasibility. Another name for them is opportunistic. This system of working with suppliers is effective in the short term, but if it is necessary to build long-term relationships with the supplier, it will not give positive results.

The second type of relationship with the supplier is partnership.

It is also possible to use both approaches when working with any specific organization. The option of coordination (selective competition) or cooperation (selective partnership) is possible.

The enterprise's relations with suppliers should be built both on the principle of economic feasibility (that is, be opportunistic) and based on strategic partnership.

To determine which type of relationship is most suitable for a particular enterprise, you need to carefully analyze a number of factors (both external and internal) and obtain information about the work of suppliers. First of all, you should study the procurement object. Then you can choose a negotiation strategy.

If an organization works with non-strategic material or product groups, when there is no need to change the properties and characteristics of the product in accordance with customer requirements, then it is necessary to build relationships with the supplier based on the principle of economic feasibility (opportunistic). In this case, such a strategy will not negatively affect the quality characteristics of the supplied goods.

If, when purchasing simple products, there is a need to standardize them, relationships also need to be built on the principle of economic feasibility, especially if the enterprise producing the desired product does not fully utilize production capacity or has difficulties with sales. In such a situation, it is possible to change the supplier or replace the product.

Where does the organization of work with suppliers of goods begin?

Organizing work with suppliers begins with searching for them. In order to select a supplier organization, you can:

announce a competition;
study advertising materials, professional periodicals, catalogues;
attend any industry fairs or exhibitions;
establish contact with possible suppliers.

Below are the criteria by which you need to decide whether or not to enter into a transaction with a supplier.

Impact on the final result. Products and services purchased by an enterprise can make different contributions to the cost of the finished product and have different effects on the final result of the activity. The type of relationship between firms depends on the degree of impact. The more significant the impact the purchased product has on the final product (or service), the more necessary it is to build partnerships.
Volume of purchase. The greater the volume of purchases, the greater the impact this category of goods has on the formation of the cost of the finished product. Therefore, as the volume of purchases increases, partnerships become appropriate.
Complexity of the product and completeness of delivery. If an enterprise needs to purchase a simple single object, then the relationship with the supplier can be built opportunistically. But when the complexity of the purchased product or the completeness of the delivery are required, it is better to choose a partnership with the supplier. By purchasing technically complex products, the company becomes dependent on the knowledge of the supplying enterprise in the field of technology. If she also uses equipment installation and maintenance services, technical and consulting support, then changing the supplier may entail an increase in costs.
Risks. Both external and internal risks must be taken into account. Internal ones arise due to instability of consumption. If irregular deliveries are needed, the supplier must be flexible. External risks – monopolization of the market, the number of possible supplying companies; balance of supply and demand; geographical risks associated with the remoteness of suppliers, etc.

How to choose a reliable supplier: 10 evaluation criteria

To be sure that the new counterparty will deliver efficiently and on time, check it against checklist of 10 indicators. With its help, it is possible to determine which of the counterparties is an “excellent student” and which one is a “low student.”

You can download the checklist for verification in the article in the electronic magazine “Commercial Director”.

2 schemes for working with suppliers

Scheme No. 1. One supplier

It is not necessary to enter into contracts with several companies. For some organizations, working with a single supplier (or two or three) is more convenient. In this case, if the goods are purchased in large quantities, you can get a good discount, which will lead to a reduction in the cost of production. To be sure of the reliability of the supplier, you should look for one that has a long-standing reputation and its own name. Also, before deciding to enter into an agreement, you can read reviews from enterprises that are the company’s partners.

This scheme is suitable for organizations that have been operating for many years, have significant experience working with suppliers and working capital that allows them to purchase goods in large quantities.

Scheme No. 2. Several suppliers

If there is a shortage of working capital or at the stage of promotion of a company, work with suppliers on procurement should be organized differently. The most important thing will be to ensure timely payment of invoices for supplied products. This will allow you to avoid falling into a debt trap and stopping the enterprise due to delays in payments and refusal to fulfill the terms of the contract.

When you work with one or two suppliers, you overpay for the goods purchased. If a wholesale supplier has a fairly wide range of goods, then he is a reseller. Its prices are much higher than those that manufacturers could offer you directly.

When working with one supplier, there is a risk of not receiving the goods due to various circumstances. If you take products for sale, then by the time you pay for them you may not have the required amount, since the money will be used to pay other bills, pay salaries to employees, etc. A delay in payment will mean a failure to fulfill the obligations of the contract.

low cost of goods purchased from the distributor;
low cost of goods purchased from the manufacturer;
guarantee of the quality of products purchased from resellers who specialize in certain categories of goods;
lower cost of goods purchased from organizations engaged in supplying products only from a certain manufacturer (authorized dealers);
the ability to defer payment, purchase the missing quantity of goods from other suppliers while the debt is being paid to others;
the ability to ensure the life of an enterprise “on credit” through small amounts of debt to each specific supplier;
participation in various bonus programs developed by suppliers;
cooperation with the possibility of concluding exclusive contracts.

If an enterprise cooperates with a large number of suppliers, then it can develop its own strategy for interaction with each of them, taking into account the specifics of the products and the conditions offered by them. When purchasing products that have a very short shelf life and are sold by many organizations, you should build relationships with the supplier based on the principle of economic feasibility, requiring strict compliance with the terms of the contract, excellent quality, and low prices. In this case, it is better not to count on long-term cooperation.

A newly launched enterprise will not be able to interact with only one supplier, even one that works with a wide range of goods.

Expert opinion

4 more criteria for choosing a supplier

Boris Tsirkin,

Managing Partner, KASKAD Family

We needed to purchase ceramic blocks. Suppliers were selected over six months in two stages. At the first stage, we studied preliminary commercial proposals and negotiated. As a result, we eliminated two companies whose conditions were unacceptable to us. At the second stage, we tested the work of the selected companies in practice, signing short-term contracts with them for the supply of ceramic blocks.

Over the course of six months, construction materials were purchased from three suppliers, and the supply volumes were the same. This was necessary in order to select the most reliable one that would meet our requirements according to certain criteria.

Quality. To confirm the quality, the product was tested in independent laboratories. A very important point when assessing quality is organizing feedback with other clients of the manufacturer. We collected feedback from workers and superintendents at various construction sites. All samples met our and state standards, there were only minor differences. Therefore, the selection was carried out according to other criteria.

Price. This indicator must be assessed taking into account the cost of delivery to the construction site, since manufacturing plants are located at different distances. The share of the “price” criterion in decision making is about 60–70%.

Prices for purchased products fluctuate depending on the season, so we used average annual values in our calculations.

Stability of supplies. If a manufacturer has a shortage of products during the season, then short deliveries are possible. Large enterprises need a guarantee of stable supplies, and sometimes supplies in excess of the volume specified in the contract.

Loyalty and partner trust. This is the most difficult criterion to evaluate, but it is extremely necessary. If a supplier is sometimes willing to supply goods without prepayment, promptly respond to complaints and do more than agreed upon in the contract, then this is a significant advantage for him.

Methods of working with suppliers: pros and cons of each

Method 1. Purchase of goods in one batch

It consists of purchasing a large batch of goods at a time (in bulk).

pros: It is quite easy to prepare documents, there is a guarantee of delivery of the whole batch, and the opportunity to get a good discount.

Minuses: large areas of warehouse space are required, capital turnover with this method slows down.

Method 2. Regular purchases in small quantities

The organization places an order for the supply of the required quantity of products within a certain time. The goods are delivered in small quantities.

pros: capital turnover is good, since payment is made for each small batch, and not for the entire volume at once; there is no need to have large warehouse areas; Documentation costs are reduced, since the order is placed for the total number of goods.

Minuses: there is a risk of ordering goods in excess of the required quantity; the need to pay for all ordered goods.

Method 3. Daily (monthly) purchases according to quotation sheets

This method is suitable for those who purchase inexpensive and quickly consumed goods. Quotation sheets are compiled every day (or every month). These should include:

a complete list of purchased goods;
quantity of products available in stock;
required quantity of goods.

pros: capital turnover accelerates; warehousing and storage costs are reduced; deliveries are made on time.

Minuses: the need to maintain strict records of purchased products.

Method 4: Receive goods as needed

Similar to regular deliveries, but has its own characteristics:

the required quantity of products is not calculated exactly, but is determined approximately;
there is a need to negotiate each order with the supplier;
an invoice is issued only for the delivered goods;
If the contract has expired, the customer has the right not to accept the goods that have yet to be delivered and not to pay for them.

pros: there are no strict obligations on purchase volumes; capital turnover accelerates; Documentation costs are minimized.

Method 5. Purchase of goods with immediate delivery

This method is used when the purchased products are used occasionally at the enterprise or if it is not possible to purchase them as needed. When a product is required, an order is placed and the products are shipped from suppliers' warehouses.

Disadvantage of the method lies in the need for detailed documentation for each order, which entails increased costs, small batches of orders and many suppliers.

How should work with suppliers of goods be regulated?

The enterprise must develop a “Regulation on working with suppliers.” It covers issues such as the selection of suppliers and relationships with them. This document is necessary for the proper organization of the work of the procurement department and control over their activities. It also indicates the terms of work with suppliers. The Regulations should contain the following points:

who is considered a strategic partner(in which case should relations with a supplier be built as partnerships rather than opportunistic ones, who can be considered a partner (for example, these could be organizations with a certain share of supplies));
in what order are commercial proposals considered?. This paragraph should also contain the criteria by which a decision will be made on whether or not to negotiate with the company. The terms of cooperation must be written down, and if they are not met, the contract with the supplier cannot be concluded. Exceptions may be made for manufacturers of unique or exclusive products. When working with suppliers, you should use tools such as a contract work schedule, a category “working out” schedule and a proposal picture. They allow you to effectively search and select suppliers, evaluate their commercial offers, and analyze the effectiveness of concluded contracts. Suppliers are usually found by attending industry exhibitions. After selecting potential partners for a certain time, the company reviews commercial proposals, evaluates them and, if necessary, searches for manufacturers of the purchased categories of goods in other ways. The offer picture is a tool necessary for comparing several offers either for goods of the same category or for similar contracts. When using such a tool, you need to follow the “7-5-3” rule. It consists in the fact that it is necessary to conduct a comparative analysis of 5–7 proposals, selecting the 3 most acceptable ones. A contract must be signed with two companies, which will ensure uninterrupted supply;
criteria for selecting new suppliers. This paragraph specifies who is responsible for concluding an agreement with a new supplier, what criteria are the main ones for making a decision on cooperation. The specific gravity of each of them is also indicated;
regulations for adding data about the supplier and product to the information system. Contains information about what documents suppliers must provide when concluding a contract (this may be copies of the charter and constituent documents, price lists, catalogs, technical characteristics of goods, certificates and declarations of conformity), who processes them and transfers them to other services;
order and procedure for placing orders. It contains rules for placing and sending orders to the supplier, examples of forms; it is specified how the manufacturer confirms the order;
order and procedure for paying bills. This is information about in what form, in what departments and terms it is necessary to submit data on payment of invoices, what to do in case of disagreements with suppliers;
procedure for revising existing contracts. Changing the terms of the contract may be necessary if it is necessary to reduce or increase the quantity of purchased products. This paragraph also specifies the reasons why the contract with the supplier can be terminated (quality of goods that does not meet the requirements of standards, short deliveries, concluding a contract with other companies on more favorable terms, etc.);
handling complaints. It determines which products can be considered defective and attributed to the counterparty, as well as what to do when supplying such goods (return, replace, demand full or partial compensation, discounts, etc.). The procedure for the actions of the responsible employee in each specific situation is also prescribed;
rules of the negotiation process. Establishes rules for preparing for negotiations, determines who should participate in them, as well as the uniform of employees. In addition, it contains information about what negotiations can be considered successful and how to correctly draw up protocols;
regulations for interaction with suppliers when visiting industry exhibitions, if they are present at presentations held by the organization, corporate events (determines the budget for such meetings, those responsible for their conduct and organization, the procedure for receiving funds and preparing reports);
business travel rules contain information about the amount of funds allocated for them, the procedure for registration and purposes of business trips, requirements for the preparation of reports on business trips (including financial ones);
ethical issues in supplier relations(the organization’s attitude towards bribery attempts, kickbacks, definition of the concepts “commercial gift”, “commercial information and secret”).

To correctly draw up this provision, it is necessary to prescribe the procedure for working with suppliers, to identify all the processes that in one way or another affect interaction with them.

What is the contractual work with suppliers?

To start cooperating with a manufacturing company, you must enter into a purchase and sale agreement or a supply agreement with it.

Purchase and sale is a universal legal form that regulates exchange relations and allows for its various types. Both the purchase and sale agreement and the supply agreement regulate relations in the sphere of circulation of goods, which are purchase and sale in economic terms.

An agreement concluded between two organizations may contain other sections that this scheme does not provide for, since the terms of the contract are previously agreed upon by both parties to determine the rights and obligations of each of them.

The purchase and sale agreement must contain certain clauses stipulating the terms of delivery of goods, terms for payment of invoices and rules for acceptance of products.

Terms of delivery and payment. They contain information about the cost, specify the payment procedure (this can be partial or full prepayment, payment after receipt) and the form of payment (cash or bank transfer), as well as the procedure for crediting funds to the supplier’s account.
Terms of delivery and procedure for acceptance of goods. They determine the procedure for accepting purchased products and drawing up the necessary documents. This paragraph describes the issue of ownership of the goods.
Responsibility of the parties. This defines the rules for filing claims in the event of delivery of goods that do not meet the requirements of regulatory and technical documentation, or in the event of delivery of goods in quantities different from those specified in the contract.

In business, the most commonly used type of obligation is supply agreement. This is the best option that allows you to regulate the relationship between two companies, one of which is the Supplier (Seller), and the other is the Buyer. Supply relationships should be built by concluding long-term contracts, rather than one-time deals for the sale of small quantities.

When concluding an agreement, enterprises must agree with each other on its terms, which will determine the content of the document. These include:

subject of the agreement: The supplier ships goods from the warehouse and delivers them to the customer. Their quantity, range and prices are reflected in accompanying documents (invoices or sales receipts), payment terms are specified in the contract;
duties of the parties: The customer must pay for the products received within a certain period from the moment the goods arrive at the warehouse (this date is indicated in the invoice). The basis for receipt of products by the customer’s representative is a one-time power of attorney. It confirms the right to receive the goods after the supplier's invoice is accepted and signed. When the goods have already been transferred, the buyer is responsible for them;
special conditions and payment procedure: If the order has already been received by the buyer, but has not yet been paid for any reason, then the goods are considered the property of the supplier company, and responsibility for its safety until payment is made lies with the buyer.

Sales and purchase agreements and supply agreements concluded by both enterprises (legal entities) and individual entrepreneurs. They are necessary in the conduct of business of the company and allow you to cover the entire turnover. A supply agreement is one of the types of purchase and sale agreement; it has the same economic meaning (receipt of products by one entity from another for a certain fee). These two types of contracts have the same economic content and legal characteristics; they ensure the transfer of ownership (or other property rights) to the goods.

Registration of contracts carried out as follows:

the contract form is filled out, and all sections and details must be observed;
the contract is registered in the accounting book, the conditions must be indicated (number, validity period, terms of delivery and payment);
the data of each agreement is entered into a computer database (full names of the enterprises that entered into the agreement, its number and validity period).

How to keep accounting records of work with suppliers

Suppliers and contractors are businesses that:

supply raw materials, materials, and other types of inventory items;
provide customer enterprises with various types of services (electricity, gas, water supply, sewerage, etc.);
perform various works (this can be maintenance, repair work, etc.).

Accounts receivable and payable- this is an integral part of the organization’s payments for the purchased goods; it can arise for all types of them.

Payment for goods to the supplier or contractor is made after the products are shipped from the warehouse, or after completion of work, provision of services, as well as directly during their implementation.

The organization itself chooses in what form to pay for the goods received or services provided. If control over the timely execution of payments is organized correctly, then contractual and settlement discipline will be strengthened, deliveries will be carried out on time and in the quantity specified in the contract, receivables and payables will be reduced, and cash turnover will accelerate. All this will contribute to the formation of responsibility among the parties for compliance with payment discipline, while the financial condition of organizations will improve.

Currently, almost all organizations have accounts receivable; they are formed due to the following objective reasons:

an organization that has debt can use additional working capital (free);
An enterprise providing loans can expand the sales market for its products, work performed, and services provided by concluding agreements with companies that cannot pay off immediately.

Accounts receivable are formed if the transfer of ownership from one organization to another and payment for goods (work, services) received are carried out at different times.

Accounting for settlements with suppliers and contractors is necessary in order to summarize, systematize and store information on settlements with suppliers and contractors. The database should contain information about:

received inventory items, accepted work performed and services consumed (these include electricity, steam, gas, water supply, etc.), as well as the delivery or processing of material assets, payment documents for which are accepted and subject to payment via bank;
inventory items, work performed and services provided for which there are no payment documents (these are uninvoiced deliveries);
surplus inventory items discovered during their acceptance;
transportation services received, including settlements for shortfalls and overcharges of the tariff (freight), as well as for all types of communication services, etc.

Automated method of accounting most convenient for accounting. Using it, a supplier accountant saves his time, as well as financial resources that might be needed to hire several additional employees.

If the company uses automated programs to control payments to suppliers, then the accountant can at any time see what the company’s current debt to a particular supplier is. This is the main advantage of automated systems.

Currently, all automated programs used for accounting have the following functions:

financial accounting;
registration of all cash transactions and settlements with suppliers;
registration of settlements with banking organizations for loans and borrowings.

These programs can not only enter the necessary data, but also process it, display the final results, and analyze the entered information.

What criteria are used to evaluate and analyze the work of suppliers?

Work with customers and suppliers must be constantly monitored. It is recommended to analyze relationships with counterparties every 3 months (for the main categories of purchased products). The criteria by which the performance of suppliers is assessed are, as a rule, the same as those used when searching for a partner company. They are assessed in points.

Criterion 1. Assortment (they evaluate whether the company can provide the supply of all the necessary types of goods, how wide the range of products it provides, whether it works with different product groups or only one, whether the products of this company are unique).

1 – the enterprise supplies several types of goods (no more than 10%); These products are substitutes for the main range or accompanying ones.

2 – the company is interested in the assortment, but the supplier also supplies its competitor with its products.

3 – the range of supplied goods is large (more than 30%).

4 – work with the supplier is carried out for 50% of the assortment, but its products are not unique and can be easily replaced with goods from other manufacturers.

5 – the company is a supplier of absolutely all goods of at least one product group, or its products are unique and it is very difficult to find a replacement.

Criterion 2. Price (the supplier’s pricing policy, the possibility of supplying goods at the best price, freezing prices for a long time are assessed; the cost of products includes transportation costs, the risk of currency fluctuations, etc.).

1 – the cost of the product is higher than that at which its competitors purchase it.

2 – the price of products is not fixed and changes for each batch, which leads to the need to constantly negotiate with the supplier and monitor his pricing policy.

3 – prices for the supplied goods are the same as those of the competitor; you can easily predict their changes, since they depend only on exchange rate fluctuations.

4 – it is possible to get prices lower than those of competitors if you enter into contracts for the purchase of goods or use deposit programs.

5 – the price of the product is exclusive, lower than that of competitors, fixed for a long time.

Criterion 3. Terms of payment (the main advantage here is the supplier’s willingness to provide a long deferred payment, which will not affect the price of the product).

1 – the need to make an advance payment.

2 – requiring payment for goods upon receipt or providing a deferment for a period shorter than that provided by other enterprises in the industry.

3 – it is possible to defer settlement for a period comparable to that provided by most suppliers in this industry.

4 – payment can be made after delivery, the deferment period is longer than the industry average (for example, in the stationery category, the average deferment is 30 days, a good indicator would be 45 calendar days).

5 – implementation.

Criterion 4. Reliability (guaranteed maintenance of the required amount of inventory in warehouses, good logistics, the ability of the enterprise to supply goods in excess of the quantity specified in the contract with the lowest delivery costs).

1 – delivery of goods is not carried out on time (delay of up to 3 working days), and the company does not notify about this in advance; the number of items and order volume in the invoice do not correspond to the invoice; the supplier's warehouses often do not have the required goods (supply interruptions for more than 2 months); in case of non-payment of the order, deliveries are stopped the next day.

2 – the level of order fulfillment is less than 60%.

3 – there is no clear delivery schedule, orders are not delivered by our own transport, and are completed at a level of less than 70%.

4 – transport logistics are streamlined, inventories are maintained at a high level (more than 80%); unscheduled orders are not accepted; a low minimum order amount is set.

5 – the supplier’s warehouse stocks are sufficient to ensure the fulfillment of 90% of orders, logistics are streamlined – delivery is carried out every week on the agreed day; The supplier accepts unscheduled orders, delivering products by transport company the next day.

Criterion 5. Quality.

1 – in case of delivery of a defective product, the manufacturer does not replace it.

2 – defects are detected in the products of each order.

3 – the number of defects is low (no more than 1%), the supplier replaces it within a month.

4 – quantity of defects – less than 0.5% for a certain period of time (at least six months), the company promptly replaces defective products and refunds money for complaints (within 14 calendar days).

Criterion 6. Marketing support (evaluates whether the company participates in a catalogue, loyalty programs, whether joint promotions are held, sales “championships”; whether the supplier provides the necessary number of catalogues, POS materials, and trains employees).

1 – the number of catalogs provided by the supplier is not enough.

2 – the marketing program is not streamlined, product promotion campaigns are not coordinated with partners, and their effectiveness is low.

3 – the company takes part in the publication of the catalog and displays products in the online store.

4 – the manufacturer promotes its product range by holding various promotions.

5 – the supplier allocates funds to promote its products in the customer company’s assortment, actively cooperates with the partner’s marketing service, and trains its sales staff; advertising materials are provided in the required quantity.

If marketing support is not provided at all, then work with suppliers for the purchase of goods according to this criterion is assessed at 0 points.

Criterion 7. Image of the supplier (here it is necessary to analyze what place the supplier occupies in the market, as well as whether the products of its brands are recognizable).

1 – No-name products; this means that the company entered the market not so long ago (it has been operating for no more than a year and has not yet earned a reputation); or is a wholesale company that is not a manufacturer, importer or regional exclusive distributor.

2 – the company supplies products known in this category of goods and is a regional exclusive distributor.

3 – the supplier is a domestic manufacturer.

4 – a domestic manufacturer that supplies its products throughout the country and abroad, being a leader in the industry; The company's trademarks are recognizable; it also has its own private labels.

5 – the company is the absolute leader in its product category, its brand is recognizable on the international market.

Criterion 8. Service (this criterion involves assessing the efficiency of order processing, response to customer requests, professional competence of employees, completeness of the information provided, timing of replacement of defective products, compliance of supplies in terms of quantity and quality with the terms of the contract).

1 – product delivery is not carried out within the agreed time frame, product reservation is not provided.

2 – reserving products is problematic; accurate data on the availability of certain goods in warehouses at any time cannot be obtained (this information is available only at a certain time).

3 – when delivering goods, not all necessary documents are provided, hygienic certificates for some products are missing, and replacing documents takes a lot of time.

4 – the company warns about possible supply interruptions and gives preference in the distribution of “scarce” products.

5 – the supplier provides additional services (applies a logo to goods, provides analytical data on purchases).

Criterion 9. Remoteness of the supplier (this criterion is important if products are removed from warehouses directly by the customer’s transport, as well as when delivery is paid separately by the buyer; in this case, when assessing the cost, it is necessary to add delivery costs per unit of goods to the price of the product; the remoteness of the supplier also affects reliability supplies. It is more profitable to work with local suppliers).

When evaluating work with suppliers of services and goods, it is necessary to take into account that different criteria have different weights. The score for each criterion must be multiplied by a correction factor, which is established based on the importance of this factor:

assortment, price - 2;
terms of payment, reliability - 1.5;
quality, service - 1.25;
marketing, supplier image - 1.

Based on the assessment results, the supplier is assigned the status:

key supplier– this is an enterprise that produces or imports products of trademarks to which it has exclusive rights; such a supplier works with the customer on special terms (ideally exclusive); supplies are reliable;
convenient supplier– provides goods at the same prices as direct competitors; supplies are reliable;
backup supplier – an enterprise that produces products in the same range as the key supplier and has its own brand; orders are placed when it is impossible to purchase goods from the main supplier; An important evaluation criterion here is the speed of delivery of the order, and the price is not of paramount importance.

4 rules for working with suppliers correctly

In order for a business to be profitable, work with suppliers in an enterprise must be properly organized.

There are certain rules, which the supplier relations department must comply with when carrying out its activities.

The order must clearly indicate what, in what quantity and within what time frame must be delivered.
The supplier must have the appropriate product range to perform the required work.
The supplier's responsibilities must be clearly defined to avoid disputes.
Overall success depends on establishing a contract with the supplier.

In the West, a store’s work with suppliers is based on the fact that the basis for successful production of goods is established relationships between the enterprise and creditors and suppliers.

When organizing supply chain logistics, you need to follow the rule: companies in the same supply chain should not compete with each other. Their competitors are organizations operating in other supply chains. Based on this rule, several principles building relationships with suppliers:

interaction with counterparties should be carried out in the same way as with the organization’s clients;
Suppliers should be treated in the same way as the company's clients;
it is necessary to show the supplier a commonality of interests;
It is very important to exchange information about tasks and business operations;
if the supplier has problems, you need to be ready to help resolve them;
it is mandatory to fulfill all undertaken obligations;
the interests of the supplier must be taken into account;
it is necessary to maintain contacts with partner organizations in the business sphere.

What are the pitfalls of working with suppliers of goods?

In order for an enterprise to function successfully, it is necessary to be able to properly organize work with suppliers and avoid the risk of financial losses in the event of a counterparty’s refusal to supply products for which an advance payment has already been made. If the supplier is dishonest, he may not return the funds transferred to his account. In this case, you will have to sue him, and the money will be returned, but only after a long period of time. What can a supplier relationship manager do to avoid such unpleasant situations?

The guarantee can be the use of a letter of credit settlement system. It assumes that the supplier can withdraw funds from his bank account only after documents are provided confirming that the customer has received all paid goods. If the supplier is unscrupulous, he may refuse to use this financial mechanism without explaining the reasons for the refusal.

There is also a risk that the product may be damaged during shipment or delivery. This problem can be eliminated by competently organizing the acceptance of products, carrying it out before the documents on the transfer of goods are signed.

Expert opinion

How to reduce risks when working with suppliers

Dmitry Shiryaev,

Head of Judicial Practice, Auditing and Consulting Group "Ural Union", Moscow

To eliminate technical risks and be able to distinguish unscrupulous suppliers, you need to follow the following recommendations.

Check whether the terms of delivery of the goods are indicated in the contract. It must be indicated within what time the supplier undertakes to deliver the order, whether an advance payment is required and in what amount. If this is specified in the contract, then in case of failure to comply with its terms, it will be possible to terminate cooperation with this organization. To avoid any disagreements, it is recommended to clarify which days are taken into account when determining delivery dates (calendar or working days).
Notify your partner in writing of your intention to terminate the contract, citing the reason for your actions. It is advisable to indicate in the contract the terms within which notifications should be sent. The grounds for termination of cooperation may include not only delivery failure or inadequate product quality, but also, for example, delay in payment. If partner companies conduct business correspondence by e-mail, then it is necessary to record the mailbox addresses in the agreement and indicate that correspondence on the Internet is official, even if the companies do not use an electronic digital signature.
Require the actual address of the company to be indicated in the contract. If, due to incorrectly specified coordinates, the letter does not reach the recipient, the contract may still be terminated.

Information about the experts

Boris Tsirkin, Managing Partner, KASKAD Family. Boris Tsirkin graduated from the Russian Economic Academy. G. V. Plekhanov. Certified Professional from the Commercial Investment Institute (CCIM). Since 2010 - managing partner of the KASKAD Family company. KASKAD Family unites six companies providing a full range of services in the suburban real estate market of the Moscow region. Founded in 2008. Staff - 190 permanent employees and 450 temporary. The portfolio of customers includes: JSCB Investtorgbank, CB Otkritie, Coalco, Orion Property Fund, Sekisui House and others.

Mikhail Krapivin, Managing Partner, Verity Advisors, Moscow. Mikhail Krapivin is a graduate of MGIMO and the University of Chicago (Master of Public Policy). Has extensive experience in consulting. Prior to joining Verity Advisors LLC as Managing Partner, he created and led the corporate intelligence team at a Big Four accounting firm, where his clients were primarily Fortune 100 companies operating in the former Soviet Union. Associate member of the Association of Certified Theft Investigation Specialists. Verity Advisors LLC was founded in 2008. Provides services in the field of risk management. Official website -www.verityadvisors.ru

Dmitry Shiryaev, head of the judicial practice department of the auditing and consulting group “Ural Union”, Moscow. AKG "Ural Union". Field of activity: audit and consulting services. Number of personnel: 90. Annual turnover: more than 311 million rubles. (in 2013). Place in the ranking: included in the top 40 auditing and consulting groups (according to Expert magazine, 2013). Main clients: Volgotanker, Oboronservis, Rosnefteflot, Satori, Slantsy plant.

The world is so filled with Chinese-made goods that it can be difficult to find anything on the shelves made in Europe or the USA. Products from China are delivered mainly in bulk, and this reduces the cost even more. How to organize deliveries.

Until relatively recently, the quality of Chinese goods was so low that trading them was considered unprofitable. Over the course of ten years, China's industry has developed in such a way that today it would no longer occur to anyone to say that Chinese goods are not trustworthy.

Chinese industriousness has become synonymous with ability to work, and goods from China surround us. It is likely that even now you are sitting at a Chinese table, drinking tea from a Chinese cup, and have a Chinese computer mouse at hand. Manufacturers are doing their best to locate their factories in China.

Sometimes it begins to seem that there are almost no goods left in the world that are not made in China. Inexpensive goods - from kitchen utensils to sophisticated equipment - have filled half the world and continue to spread non-stop, involving entrepreneurs in the sphere of cooperation.

Chinese goods are delivered mainly in bulk, which significantly reduces their cost. With well-coordinated work between the customer and the manufacturer, goods are delivered quickly. If you decide to import goods from China, first of all, determine how exactly it is convenient for you to organize the delivery. There are three possible operation options.

Option one. Directly

You will work directly with the manufacturer. Potentially, this option may be the most profitable if you meet the following conditions:

You have extensive positive experience in purchasing Chinese products, and you are excellent at drawing up contracts on foreign economic activity and all the necessary accompanying documents, you can organize quality control, transportation and correctly clear goods at customs.
You speak English well, or better yet, Chinese, the business language.
You are no stranger to the process of trading with Chinese producers regarding the terms and prices of supplies.
If necessary, you can organize an urgent trip to China.
If you realize that you are unable to provide these conditions, you face serious problems and losses.

Option two. Cooperation with trading companies

A trading company, unlike a manufacturer, does not own production, but buys goods from the manufacturer and adds its own margin to the price.

When working with a trading company, you will face the same conditions and problems as when working directly with the manufacturer. However, there are some features, including pleasant ones:

The product range is much wider.
Employees of trading companies have a much better command of English, which makes communication easier.
The company better understands the complexities of the export procedure.
Order quantities may not be very large.

And not very pleasant ones:

A higher price for the product than with direct cooperation.
Quality problems may occur.
Difficulties with intellectual property rights.
You will not be able to control the manufacturer.

Option three. Working with professionals

Companies organizing supplies from China do not provide services such as registering companies or purchasing real estate in China. For them, supplies are the main and only activity. Consulting companies, which often declare themselves as supply companies, usually are not. Professional advice from experienced companies is helpful, but it is not enough to make importing from China successful.

A distinctive feature of professional companies organizing deliveries is the presence of offices in Hong Kong and (or) China. Such companies have at their disposal an extensive database of reliable manufacturers; their employees are well aware of the Chinese mentality, use well-established supply organization schemes, minimize risks and help increase the profitability of supplies.

The company, ideally, should become your representative office in China and take on the functions of:

Selection of manufacturers.
Receiving samples and delivering them to you.
Agreements on favorable prices and conditions with manufacturers.
Drawing up and signing foreign trade contracts.
Organization of production with your brand.
Control over the fulfillment of orders and constant communication with manufacturers.
Checking the quantity and quality of products before shipment.
Checking the proper execution of all documents.
Organization of delivery and customs clearance of goods.

When choosing a company, make sure that its work is absolutely transparent and that it is interested in long-term business relationships. If you choose the right company involved in organizing the supply of goods, this option will become the most profitable of the three presented, and will allow you to import Chinese goods at the lowest cost.

Regardless of what kind of goods you ship from China, remember the rules that every importer must follow:

When selecting suppliers in China, use online resources (GlobalSources.com, Alibaba.com, Made-in-China.com, etc.) and attend trade shows where Chinese manufacturers are represented.

Before making your final choice, audit your potential partner to ensure its production capabilities. Be sure to ask manufacturers for samples of their products and prices. Samples are usually provided free of charge; you will have to pay for shipping the samples from China.

Make sure the supplier understands your requirements and understands the specifications. If you do not speak Chinese, please ensure that the specifications are accompanied by explanations, drawings and pictures. Specifications must be detailed. Set product quality levels to avoid delivering defective products.

Systematically check the quality of products before shipment. It's good if you can monitor the quality of the product early in the production process to prevent defects from being discovered at the last moment. A product manufactured in China must not contradict the standards of the country of origin. Request that the supplier obtain certification and testing from a laboratory that has the appropriate credentials.

Make a clear delivery plan, allowing for a “spare” week before the goods arrive. Try to meet with the supplier in China to establish a business relationship in person. Don't accept explanations like "It's impossible" from suppliers...

A significant amount of imported equipment supplied is carried out with the help of a distributor, who is a link between the consumer and the foreign manufacturer.

Sometimes we come across the opinion that it is more profitable for the consumer to exclude distributors from the chain and switch to direct foreign supplies. Some people say that such a scheme of work is more interesting for the buyer, because markups on equipment are excluded here and, having sufficient financial capabilities, you can easily follow this scheme, but do not forget that there are risks and force majeure circumstances to which the buyer Maybe he's just not ready.

We decided to analyze two options and prepare an answer to a very pressing question today.

Comparative table of direct deliveries and deliveries through distributors.

Direct delivery

Delivery via distributor

You yourself can control the entire delivery process from the selection of equipment to its delivery to your production.

But for the whole process to be high-quality and smooth, you must have the necessary knowledge of foreign trade activities, international law, customs clearance rules, and currency accounting.

A distributor can select and offer its supplier’s products in different price categories. You just have to choose a reliable seller with experience in importing foreign products.

Here you get rid of independent searches for manufacturers, checks and networking.

There is no need to delve into foreign trade activities, logistics, conditions and customs rules. The distributor takes on all the headaches.

The cost of direct delivery is significantly lower than when working with a distributor - let's just say this is a myth. That's why. The equipment manufacturer, when a potential client contacts him, gives him a market price, not an agent price, i.e. the one that the distributor would give. It turns out that there will be practically no benefit here. Moreover, do not forget about the risks during customs clearance, errors of which can lead to additional costs.

As a rule, reputable equipment manufacturers have their own distributors in different countries. Therefore, it is not always worth chasing a lower price by buying directly, because you can purchase goods of dubious quality.

The final price of the equipment is negotiated with the distributor and fixed in a bilateral agreement. In this case, the client does not bear any additional costs.

The distributor assumes responsibility for storing and delivering equipment to the consumer.

When making direct deliveries, it is necessary to have sufficient knowledge of the English language, an understanding of the specifics of the work and the mentality of the country of origin.

When choosing a reliable and conscientious distributor, you can change the product package, its parameters and characteristics, taking into account the buyer’s requirements. Additional discounts and delivery times can always be negotiated individually.

In this case, the buyer does not need to delve into the specifics of the manufacturer’s country and work with a foreign manager.

He can ask all his questions to the selected selling company.

Installation and commissioning of equipment on our own.

Most often, the distribution company provides a full range of services, from delivery of equipment to installation and commissioning of it at your production site. In addition, the product is subject to warranty obligations from the seller.

The distributor usually has its own warehouse of spare parts and consumables.

How to purchase equipment is up to you, but in order to deliver it correctly you must:

possess a certain amount of knowledge in the field of foreign economic activity;
know all the nuances of customs work;
organize logistics correctly;
be ready to take on all the risks associated with the delivery of equipment, customs clearance, and independently correct possible defects of the manufacturer.

But you can save yourself from all these difficulties. It is enough to find a reliable and trusted distributor who specializes in supplying the goods you need, and establish long-term cooperation with him.

The main advantages of purchasing equipment from the Polymerservice company

Before concluding a contract, we conduct a long dialogue with the client, identify his needs and discuss opportunities. In the contract we transparently assign the cost of the equipment and the timing of its delivery from the manufacturer’s plant to the territory of the seller’s country.
In our company, all managers speak fluent technical English, have extensive experience in communicating with equipment manufacturers, and always protect the interests of the client. The accounting department monitors currency movements in order to eliminate possible risks when forming a transaction. Over many years of work, we have established strong relationships with customs for prompt clearance of equipment.
Our company has its own service department with many years of experience, which is guaranteed to provide installation and commissioning of equipment in your production.
We have a large warehouse of spare parts and consumables from our suppliers.
Our showroom always has basic (basic) equipment available to satisfy the needs of the most demanding customers.