how to become a vendor

Becoming an approved supplier for a large global company can change your business dramatically. But landing a big customer takes far more than a hello and a handshake. Here's what we've learned about how big companies choose new suppliers and what manufacturers and industrial companies can do to increase their chances of earning new business from them.

Quick Sourcing Stats Important For Suppliers

Thomas' State Of North American Manufacturing 2021 Annual Report revealed groundbreaking sourcing trends:

• Significant Increase in Reshoring Interest: 83% of manufacturers indicate they are 'likely' to 'extremely likely' to reshore (up from 54% in March 2020)
• Sourcing data shows an increase in demand for steel, chemicals, paper, and other raw materials
• Automotive and oil & gas companies are most motivated to add North American suppliers to their supply chains

Reshoring is important to strengthen the U.S. manufacturing industry and as more companies look to add suppliers to their supply chain, manufacturers have immense opportunities to grow their business.

How Big Companies Partner With Manufacturers, Industrial, and OEMs

Step 1: The Company Defines A Need For A Product Or Service

Whether the need falls under the direct spend or indirect spend category, initial minimum supplier requirements are defined before supplier discovery begins.

Direct spend refers to goods and services directly incorporated into manufacturing a product, such as raw materials, components, hardware, and subcontract manufacturing services. In contrast, indirect spend r efers to goods and services not directly incorporated into manufacturing a product, such as computers, equipment, furniture, office supplies, and janitorial services.

Step 2: Supplier Discovery Leads To A Shortlist

The company's procurement team begins researching possible vendors on supplier discovery platforms such as Thomasnet.com.

Big companies will research online and look into who you are, what you do, your unique selling proposition, and how it all benefits your clients. The top-performing manufacturing and industrial company profiles listed on the Thomas Network include the following elements to increase their chances of receiving an RFQ:

• • Capabilities: A short, one-page assessment of what your business can handle may end up being one of the most important overviews you include. This can include key manufacturing equipment and even the capacity of the machines you have on your shop floor.

  • Detailed Product Specs: OEMs want detailed product specs if you are a supplier of stock or configurable products; Specs also include detailed capabilities info, machine lists, and sample project pages if you are a custom manufacturer.

  • Quality Certifications: Manufacturing quality c ertification and achievement info is critical — most OEMs tend to mandate a minimum certification level and QC process for their suppliers.

  • Ownership/Diversity Status: This includes all essential classifications of diversity for your business. Some OEMs have diversity requirements for each project or product line, like women-owned or minority-owned.

  • Contact Information: This includes phone number, physical address, and email address so that customers and prospects can reach out through their preferred form of communication.
  • Product Images: Prospects want to see exactly what they're ordering.
  • CAD Models: CAD models create sales leads at a2.5x greater rate than text-based product information. Companies can get their CAD files in front of 27 million design engineers today, click here to learn about the Thomas TraceParts Network.
  • Industries Served: Which industries are best served by your core competencies? How have you successfully diversified into other sectors? Create a Markets Served gallery like the one below to attract buyers in key industries and diversify your business.
• 
  • Geographic Footprint: Are you regional? National? What geographies do you support? Do you deliver from one or multiple locations?

  • White Papers: White papers are long informative reports that can benefit your prospects in breaking down complex processes you offer.

Based on the relevant company information they find here in step 2, buyers create a shortlist of possible partners, and then contact those companies with a Request for Information (RFI).

When it comes to adding suppliers to an OEM's shortlist, big companies care about many different things that go beyond what your online presence may list, but it's important to list what they're looking for online to ensure you're not eliminated from their shortlist early. Who you're currently working with and even your company's annual sales numbers can be a deal-breaker when reviewing new suppliers.

Corrugated Metals is a roll forming and metal corrugating manufacturer. After upgrading their website with relevant content marketing assets and accurate product descriptions of what data buyers were looking for, Corrugated Metals was contacted by the U.S. Air Force to create a new product for them. The U.S. Air Force discovered Corrugated Metals on Thomasnet.com, where more than a million B2B buyers source industrial products and services.

"Advertising with Thomas lets us develop accounts that build our backlog and keep us more stable as the economy grows," said Ken Carlton, VP Corrugated Metals. "One Thomas lead that came to our company spawned an entirely new company for our business."

Learn More:

• Online Advertising That Gets In Front Of B2B Buyers
• 10 Best Industrial Website Designs That Engage Prospects
• How To Become A Defense Supplier

Step 3: Suppliers Provide More Information

Companies that were fortunate enough to receive an RFQ will need to provide the next level of information to the potential buyer.

OEMs want to know that you have a high on-time delivery rate, zero returns, and no unplanned internal downtime. Buyers are looking for manufacturers who can stand out by providing better turnaround times across products and services. Beyond cost-savings, buyers seek suppliers who can provide transparency in product availability, especially in on-demand materials, like steel, paper, and other sustainable solutions.

You may need to document and discuss the service you've been providing to your current customer base. An outline of expectations and key performance indicators (KPIs) will allow you to agree on what a successful partnership with you looks like. If your website and online product catalog has detailed product images, your prospective buyer may seek product samples. With the design team's help, the OEM engineers will test and sample your product for their project.

OEMs want to know how you operate your business and fulfill other buyers. They may be especially interested in where your raw materials are purchased and what outsourcing you employ. Many big companies tend to be interested in corporate social responsibility efforts so make sure your green manufacturing and sustainability initiatives are clearly communicated online.

Based on the information received in steps 2 and 3, the procurement team determines whether or not each supplier meets the minimum requirements defined in step 1. If so, the supplier advances to the next step.

Additional Resources:

• Green Manufacturing And The Benefits Of Sustainability
• Small Business Green Manufacturer Examples Committed To Sustainability

Star Label Products is a custom label manufacturer and uses its website to fully showcase the quality of its products — photos of application examples on food & beverage products, cosmetic packaging, etc. and a sustainability page detailing the energy usage of its facilities. Want to learn more about the components on your website that get engagement from big buyers? Check out Using Digital Marketing To Get Business From Fortune 1000 Companies.

Step 4: Advanced Supplier Review

Possible partners are more thoroughly vetted at this point.

The next step buyers may take is to set up a site visit. The buyer may want to see your operation in person to see a tour of your manufacturing facility, review your quality procedures, and discuss your most critical employees. Your internal manufacturing capabilities will be reviewed to ensure that your machinery and staff can produce the required quality and volume of parts.

However, perhaps time (or the current global health concerns regarding COVID-19) aren't on your side and the buyer needs your product ASAP. Providing buyers with the option to view a virtual tour of your facility can be a great idea and provide you bonus points when it comes to them deciding on a supplier.

You're in luck because Thomas offers video content production for free with the purchase of an advertising program for OEMs, Distributors, and Service Companies. Get started with your free facility tour video like the one below — 89% of viewers are likely to purchase a product after watching a video of it. Contact us to get started with your video and get engagement from big companies.

"About half of our new custom work comes from Thomasnet.com leads. We could not have competed for — and won — all the new business we have without our strategic Thomasnet.com program," said Alli Cravens, Sales & Marketing at Granger Plastics.

As the buyer's design and engineering team begin testing their prototypes, you may need to travel to their facility to aid in product testing and provide feedback on a buyer's original design. (If there are still travel restrictions regarding global health concerns, this is where using video technology and having an online presence will help too.) Your ability to offer design alterations to increase manufacturability and profitability will be a tremendous advantage.

If they didn't already, the buyer might want to see your expertise first hand and request a sample of a custom part. You'll need to provide samples included with the prototype assembly, and you'll be expected to assist with installation and appropriate testing to ensure proper use by the buyer. You may need to decide whether to "eat" tooling costs to win a more significant business opportunity.

You'll want to review the buyer's needs and provide any analysis to reduce the overall cost. This may be in product selection, design, volume, or shipping options. Only if a supplier meets all the requirements — and meets them better than the other candidates — does that supplier get selected for the next step.

Another Angle: What's The Problem With Volume Commitments?

Step 5: Acceptance As A Viable Partner

The "winning" supplier goes through the company's new supplier setup process, which (of course) involves contracts, paperwork, but most importantly, a new opportunity .

The supplier is added to the company's approved vendor list, which exposes the supplier to the company's vast global network of purchasing professionals.

Learn More: The 3 Most Influential Buyers Of The Industrial Buying Process

American Crane's website, as seen below, is highly engaging for buyers at big companies. American Crane's resources educate buyers on the type of product they need no matter where they are in their purchasing journey. American Crane's website is modern and responsive, giving buyers a green light they'll be working with a high-quality manufacturer that's up to date with technology.

According to B2B statistics, 73% of B2B buyers pay attention to a supplier's website when deciding to submit an RFI. More than 1.3 million of them begin their sourcing on Thomasnet.com. American Crane's company profile video on Thomasnet.com has received views from big companies like The Walt Disney Company and ExxonMobil.

"Our business grew from $24 million to $40 million in four years," said Karen Norheim, President and COO of American Crane. "We're creating this whole other avenue of a sales pipeline that we didn't have before, and we're reaching people we wouldn't have reached before. The website content we offer and our advertising presence where these buyers are searching is an integral part of making that happen."

See More B2B Buyer Stats:The 2021 Industrial Buyer's Search Habits Survey Results

How To Help Your Buyers Source Faster

When sourcing publicly, it should be no surprise that it can be a slow process that can take months or even years. As a supplier, it's essential that you find ways to speed up the process for your buyers, while still remaining compliant. This can help you establish a great relationship with procurement folks and improve the likelihood of them becoming repeat customers.

3 Ways To Accelerate Contract Signing

• • Centralized Contracting: If your customer is working on a large project, ask if there are other ways you can help them? It's easier to work with one supplier than multiple if possible.
  • Internal Workgroups: Create groups of employees across your organization to help your customers accelerate the buying process. Discuss the common needs, solutions, and implementation plans.
  • Easy To Use Product Catalog: If you're a custom manufacturer, make it easy for procurement people to search what they're looking for on your website and Thomasnet.com profile. Offer downloadable CAD files so engineers can also spec projects.

"A key thing about Thomas is the ability to generate a lot of leads across various industries," said Jeff Collins, Partner at Renown Electric Motors & Repair. "As a marketing department of one, it has been really helpful to have Thomas around to help with our marketing strategy as opposed to making it up as we go." Renown Electric's product pages are now #1 on search results. Their website SEO and content strategies are attracting qualified visitors and leads.

💡 Thomas Tip: CAD files can contribute to 2.5 x more sales-qualified leads than text-based content. Our marketing experts can review your company's website for free and see how you can improve your growth methods to attract buyers from big companies.

Become A Supplier For Big Companies

As you can see in Step 2, it's vitally important for your company to have an online presence on supplier discovery platforms such as Thomasnet.com — a leading resource that enables you to promote the wealth of detailed information buyers require when putting together their shortlists. The Thomasnet.com registered user audience includes buyers from 93% of the Fortune 1000. But those buyers can't contact you if you're not listed.

"Qualified leads are coming to us now, and since prospects can easily search our capabilities and qualifications (on Thomasnet.com), those who contact us are more inclined to do business with us." — Bill Boyer, CEO, Boyer Machine & Tool Co., Inc.

And when you couple your Thomasnet.com Company Profile with a strong website, you can drive real new business results and get in front of big companies. Today's B2B buyers are digital natives and expect content to be available on-demand, optimized for any device, interactive, and highly visual.

73% of B2B buyers surveyed said they pay attention to a supplier's website when deciding whether to submit RFIs

➡️ What's Next? See If Big Companies Are Searching For Your Services Right Now With A Free In-Market Buyer Report

"Thomasnet.com opens doors to large organizations that have tremendous potential as long-term customers. The company responsible for maintaining the Golden Gate Bridge found us on Thomasnet.com when they needed a quick turnaround on a custom replacement fastener for use throughout the bridge. We met the need, and now provide those fasteners for the constant refurbishing and maintenance of the bridge." — Chicago Nut & Bolt, Inc.

Our industrial experts are here to help you land your dream customer — we've been connecting buyers to the right suppliers for more than 122 years. Contact us to learn how your company can reach the right B2B buyers, procurement managers, and MROs.

Here are some additional resources for buyers and suppliers:

• The 2021 Ultimate Guide To Marketing For Manufacturers
• How To Improve Your Supplier-Distributor Relationship
• Using Digital Marketing To Win Business From Fortune 1000s
• 12 Sourcing Tips To Identify New Quality Suppliers
• Increase Your RFQs With Thomasnet.com Registered And Verified Programs
• 5 Ways To Keep A Supplier Engaged And Build Supply Chain Partnerships
• How To Make It On The Industrial Buyer's Shortlist

Editor's Note: If you're sourcing suppliers for COVID-19 items, click here for those manufacturers and distributors. If your industrial business can support the production of essential supplies to combat the COVID-19 outbreak, please complete this form to notify us of your availability and willingness to dedicate resources. Thomas is working with State and Federal Government offices to help mobilize manufacturers to deliver supplies and services.

how to become a vendor

Source: https://blog.thomasnet.com/how-big-companies-choose-new-suppliers

Posted by: livingstonantley.blogspot.com

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