Why is having the freedom to choose suppliers based on quality rather than cost is crucial for your business?

Your business outputs are the most important aspect of your SME. They represent the overall quality and efficiency of your internal processes, and this all begins with your suppliers. A supplier that provides you with superior materials is your key to the best possible outputs at the end of your production line.

In recent times, many businesses have learnt the importance of having a strong supply chain when significant supply chain disruptions occurred as a result of the pandemic. At this time it was so important to keep as much of your supply chain going and being able to choose your suppliers for their quality and ability to deliver consistently, rather than their cost.

Having this freedom means that your business has the flexibility to be prepared to change suppliers if needed. This could mean moving to a local supplier if your overseas suppliers are having supply chain issues.

It can also lead to reduced costs and increased sales. By selecting your supplier based on their absolute quality and reliability, you will be able to efficiently increase your outputs, which can result in more sales and an increase in revenue. Then with the high-quality of outputs you will experience less returns and quality issues meaning a reduction in dealing with the costs associated.

You can also benefit from a quicker delivery time if your business needs it. Without worrying about cost you can pay a little extra for quicker shipping or choose a supplier that is local so therefore is likely to have quicker shipping as a result.

However, you might be wondering how your SME can do this, as you most likely have a cashflow that cannot steer from its regular path. As this could derail your cashflow processes and therefore your outputs. So, choosing suppliers for their qualityand flexibility while not thinking too strongly about their costs might not seem feasible for your business.

While this is a common thought among small and medium sized businesses, there is a way that SMEs can have this opportunity, and therefore grow their business for the better as a result.

One of the best ways to solve this issue is through tailored Trade finance options through anon-bank lender. Non-bank trade finance is the best choice for SMEs in Australia, especially with Grow Finance.

But what is trade finance? Trade Finance is a line of credit for businesses to order stock from overseas and domestic suppliers. It allows a company to purchase its stock and inventory without interruption to its cash flow. This way you can select your suppliers based on more than just cost, but also quality and efficiency. As a service, it also allows you greater purchasing power, which can support your business growth and ability to have more significant sales volumes.

If you want to learn more about Grow Finance and their trade finance facilities, then give them a call on 1300 001 420, or read more on their website.

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