One of the most important part of most businesses is to have a good supply chain. From the very first steps in our company, we have been trying to determine the possible channels to get the best quality for the best price. According to our experience, we have identified 3 categories that one should pay attention to, when choosing the right suppliers for the business.

1) Price: For start-ups it is important to find the cheapest price, at the given quality of product. Thus the search should not be limited to Sweden only, it is good to check suppliers in other countries, especially within EU, since it is easier to import goods and calculate taxes. Be aware that if you import anything from outside of the EU, you need to pay additional taxes upon the delivery, and the supplier is not responsible for taxes amounts, so you most probably won’t be warned about it in advance. Earlier in our journey, not paying enough attention to this issue, we ordered some components from the USA, and paid roughly 30% of the product value extra as taxes, upon the UPS delivery.

2) Delivery terms: It is important the know the capacity of your suppliers in terms of how many components/goods they can deliver in a day/week/month. If your are producing your own product, it is important to know how long it takes for the supplier to prepare the order and ship it, so that you can plan your production carefully.

3) Product info: It is beneficial to build relationships with suppliers who are potentially able to provide your growing company with a life-time, so to speak, components that you need now, or are going to use in the future. Thus, we advise to request the information in advance on whether any of the components that your product rely on might be out of production in near future, and what substitutes might be available then. This way, you can plan and design your product accordingly. The important thing for us was also to be able to access the complete data-sheets with information about alternatives, available product certification and precise complectation. For example, if your supplier is based in UK, then the electronic equipment they sell might require buying an additional plug adapter, to be used in other European countries.

It takes significant amount of time to determine the best suited components for your product, but it is equially important to carefully plan who and how is going to supply these components. It is always good to start the research about possible suppliers as early as possible in your journey. We at Greinon wish you good luck! 🙂