Top 5 questions to ask while choosing an industrial equipment supplier

Gone are the days when business relationships were made by having face to face conversations. With internet taking the world by storm, all information is available online. Today, industrial online shopping has become the alternative to the traditional stores. Now, with a click of a button, businesses can industrial products online. Witnessing an opportunity, many industrial equipment suppliers have decided to go online. Some of the top known suppliers who offer products online include likes of Moglix.com. Hence, if a business is searching for a supplier, there are some simple questions one need to ask. The answers will play a vital role in choosing whom to work and partner with. What is the Minimum Order? Many suppliers have a minimum order before they can ship. Depending on the type of industry, it can vary from a pallet to a truckload. As a buyer, one needs to know what their minimums are to understand whether the business is working with the right type of supplier and ensure there a future orders. Will the Supplier Offer Volume Discount and Price Breaks Many times, the supplier offers price breaks in case of bulk volume orders. This will allow business to save money on the purchase. In addition, bulk orders also allow the warehouse to perform efficiently. Hence, the key is to find out where price breaks are available and see how one can take advantages of re-arranging or consolidating the orders. What will be the Total Cost? While the supplier gives a quote for the material or product cost, one needs to be sure to ask other associated fees. For instance, will the receiver needs to pay for delivery charges, fuel charges and restocking charges for returns? It is good to get all these documented in the contract and identify any item which is expected to cost the business. In addition, it is advisable to ask the supplier for costs associated with delayed delivery. What are the Payment Terms? Usually many suppliers issue invoices for paying the amount with 30 days. However, some suppliers opt for cash on delivery (COD), pre-payments via wire transfer, credit cards or cheque payments. Hence, the business should have this conversation at the very first minute to ascertain the payment period. When will the Company take Ownership of the Product? Check with the supplier if the company gets ownership when the product is delivered or after the certain time period. Also, it is advisable to include a delivery and inspection clause in the contract to allow three to five days grace time period to check out the order before taking the full ownership. Will the Supplier Issue a Liability Insurance Certificate? Any reputable industrial equipment supplier will be able to issue a liability insurance certificate. This certificate is very important as it will the business in case of any product recall or other issues. In addition, the business sure to set limits and ask for an updated copy every year.