As many of you who run businesses already know, choosing which suppliers you will work with can be one of the most important decisions you make. A poorly run or organized supplier can slow down your production, cost you countless hours trying to straighten out problems, and may have problems filling orders on time or filling orders at all. The decision to work with a particular supplier should be made after you’ve done some checking, and after you’ve determined what you need from that supplier to make your business succeed.

When it comes to selecting a supplier, the first thing you should do is make sure that you know what your company needs to be successful. Be firm about what you require. Some suppliers may try to win you with flashy discounts or deals that sound great, but all the discounts and deals won’t mean anything if what the supplier has to offer doesn’t really meet the needs of your business. Knowing how your business works best and what is required to keep it running in that condition will help ensure you select suppliers that meet those requirements.

You should also consider reliability when evaluating a potential supplier. If a supplier can’t get the materials you need to you in a timely fashion, it could cause a lot of delays for your business. A supplier who drops the ball and doesn’t get necessary supplies to you is a supplier that could cause you to drop the ball with your customers. It goes without saying that an occasional glitch or mistake can happen to anyone, so most suppliers should get a pass if the problem is an isolated issue. What you need to watch out for is suppliers that consistently have problems. You also need to pay attention to how problems are solved and issues are handled. Does the supplier really seem to care about making things right? Does it respond in a timely fashion to requests for more information or help? Does it really seem to care about your business?

Another thing to examine when choosing a supplier is cost vs. value. Many times the instinctive reaction is to go for the lowest price. When evaluating suppliers, you need to decide what the acceptable balance between cost, service, reliability and quality should be for your business. When you look at the entire equation, the lowest price may not always be the best deal.

Asking for references can also be valuable when evaluating suppliers. In a way, a supplier evaluation is like a job interview; the supplier is becoming a part of your business, or will at least have an impact on how your business runs. Call your potential supplier and ask for testimonials, or names of customers who are willing to be references. Some of the best information about working with a supplier can come from those who already do. Make sure you don’t neglect this valuable source of knowledge.

Another way to get to know a potential supplier is to request its catalog or printed materials. Visit the website and forum or blog if the suppler has one. Examine all the content with a critical eye. Do you see typos in the printed materials? Are there broken links on the website? Attention to detail is the mark of a good supplier. If the presentation is lacking, the supplier may have issues in other areas, as well.

Finally, when selecting a supplier, follow your heart and your gut. Sometimes you’ll just know that working with a particular supplier isn’t going to work out for you. If you have that feeling, go with it. Going into a supplier relationship with misgivings isn’t going to do anyone any good. In the end, a supplier is a partner, and you should only work with partners that you trust.