What is the procedure of finding potential suppliers??
For few items I've very limited suppliers. I need to enrich my potential supper queue (foreign manufacturer). Please suggest.
Finding the right suppliers is always a question each Procurement person asks themselves. It also depends on the industry you work in. If you work in Private and Private Equity there is usually a very targeted approach and depends on the supply market dynamics. In Public industries there is also a Government process and community expectations that need to be followed. Once you do your Spend analysis, Supply market analysis and Customer expectation analysis you will be able to narrow your search. There are a number of search engines you could use, trade journals, your network etc are also avenues to find potential suppliers. Attending Forums and asking your key stakeholders are also ways to discover potential suppliers. Some organizations also have a very specific supplier development team that focuses on emerging suppliers.
You may opt for various research and advisory sites- Gartner, Forrester and they have really good material. Specially Gartner have Gartner magic quadrant that provides holistic view on the supplier list for respective category/subject of interest.
Are you sure you really need to find new suppliers? If it's for just few, non strategic items, you can also think at allocating these volumes to a more strategic supplier. If you didn't do it yet, otherwise, you can also try & pull different levers:
Bundle or un-bundle the demand
Spread your demand over a longer time period
Understand which specification changes would enable you using another provider
"Walk away" and state that you'll contract them only when they'll accept your demand (risky!)
Look for alternative suppliers
Evaluate in-house options
Use agents or consortiums
NEGOTIATION DESIGN LEVERS
Harness the power of the supplier in a joint brainstorming session - leverage their strength to produce value
Negotiate with less powerful suppliers first, to gather information and test your alternatives
Keep processes simple
Consider e-sourcing for the last negotiation round
Create Multiple Equivalent Simultaneous Offers (MESO) that seem different but have the same value to you. The illusion of choice might make the supplier feel they have exercised their power and not try to push on other points.
RELATIONSHIP AND COMMUNICATION LEVERS
Increase the value of your account: demand forecast, future revenues, help the supplier to test a technology, reduce their risk etc.
Try to build a closer relationship with the supplier: take time to evaluate their E2E offering (including products / services that are not relevant for you at current stage), involve senior members of the organizations etc.
Remind them what it would mean for them if you were to move to a competitor
If the other party reminds you that the value of the contract is negligible for them, use expressions like "we both have alternatives, we are here to see how we can work together".
@A S M Tariq Hoque - Great question! There is plenty of helpful tools and templates highlighting the benefits + the process of supplier acquisition. Go to groups icon > search "Procurement - Toolkit" > Request Access