I asked ChatGPT a simple question:
Q. How do corporate buyers find suppliers?
I got the expected data-driven, fact-based, AI-developed response:
“Corporate buyers typically find suppliers through a combination of traditional and modern methods. Here are some common ways corporate buyers locate suppliers:“
Following was a seven-point list of suggestions including attending trade shows, seeking referrals, online search, social media, previous relationships, and professional networking events.
And concluding with:
“The process of finding suppliers may vary depending on the industry, the complexity of the product or service being sought, and the buyer’s specific requirements. Often, a combination of these methods is used to identify the most suitable suppliers for a company’s needs.”
Not one of the suggestions included a meeting with potential suppliers and/or sales reps. The pitfalls of that omission are a subject for another day.
However, the question just asked about suppliers and not suppliers for a specific need.
I refined my question:
Q. How do corporate buyers find suppliers for custom-made or proprietary products?
ChatGPT replied:
“Finding suppliers for custom-made or proprietary products requires a more specialized and targeted approach. Since these products are unique and often require a higher level of customization, corporate buyers typically need to follow these steps to find suitable suppliers.“
I pretty much got the same list with the following additions and change to the conclusion:
- Supplier Audits and Evaluations: Conduct thorough supplier audits and evaluations to assess their capabilities, quality standards, and capacity to handle custom projects.
- Collaboration with Design and Engineering Firms: Partner with design and engineering firms that specialize in creating custom products. They may have connections with suppliers capable of producing the required items.
- Factory Visits: Whenever possible, visit the facilities of potential suppliers to assess their production processes, quality control measures, and overall suitability for the custom project.
- Consider Local and International Options: Explore both local and international suppliers to find the best match in terms of quality, cost, and lead times.
Finding suppliers for custom-made or proprietary products can be a challenging task, but with thorough research, networking, and evaluation, corporate buyers can identify reliable partners capable of delivering the desired custom solutions. Building strong relationships with these suppliers is essential to ensure successful and ongoing collaboration for unique product development.”
There is a huge difference in selection when looking for something special. A difference, one would argue, requires skillsets and job descriptions other than “Buyer.” The last four points listed require the interaction of various disciplines including business acumen, engineering, supply chain and logistics, and project management. In the case of finding suppliers for specific needs, the AI response is completely accurate.
The thought of searching for and vetting suppliers for critical purchased items is daunting. Factoring the international search options makes it far more complicated. In following ChatGPT’s advice, a Buyer would need to have the capabilities to do the following:
- Check supplier company status for systems, financial stability, warranties, and capacity
- Conduct an engineering/manufacturing capabilities evaluation for the final candidates
- Travel to final candidates (domestic and international) to review/approve their operations as suitable including manufacturing capacity, quality control, delivery record, and service capabilities
- Compare domestic suppliers to international options. Requires evaluating import issues, international freight, delivery times, and door-to-door logistics
Without the capability to perform the above actions, many buyers have no choice but resort to suggestions from the original ChatGPT response to: “How do you find suppliers?” leaving many factors out of the process. Results are predictably unpredictable in this situation.
Even large companies with fully staffed Supply Chain departments and a presence in foreign countries require many weeks, if not months, to go through the vetting process; a timeframe unlikely to accommodate most buying scenarios. Often (if not most) times, there are deadlines, which are impossible to meet.
If the knowledge and skills to follow the thorough process are unavailable, there are options to use outside sources to execute the entire evaluation process. Consider finding an experienced firm to handle optimizing your supplier selection. They have manufacturing, engineering, and supply chain knowledge of manufacturing sources and are already familiar with their operations yielding an informed and quick answer to the complicated question of finding a supplier for proprietary or custom goods.
The thoroughness suggested for locating a good supplier of specific goods suggested by ChatGPT may be the best advice possible even if it comes from an artificial source. The answer may lie in connecting with a real organization that has already done the legwork.
