Does your company rely on the right international partners?

Here then we need to ask ourselves what is being done in comparison with our competitors: we need to carefully evaluate pricing strategies, promotion and our own know-how to leverage what makes our business unlike any other.

A strategy that can make the difference, but often underestimated, is the ability to choose and build relationships with the right partners. In fact, theirs selection it must not be limited to a mere choice of the most advantageous economic offer, but rather must take into account many factors. Furthermore, you must think of a structured path of choice in order to have the best possible partnership for your company.

The main stages

The main stages of qualification of international partners are summarized in:

– Selection of partner

– Qualification of partner according to defined criteria

– Evaluation of his performance

– Requalification and confirmation of partnerships

1. Selection of international partners

The selection process begins with defining the qualification criteria according to which the partner will be selected, and can include many factors, but those to be absolutely taken into consideration are:

- Competence: it is necessary to verify the counterpart's experience in the reference field, for example by trying to understand which clients he has previously worked with, or by asking for references or references: often the most important clients are included directly on the potential partner's website. Another suggestion can come from obtaining an ISO certification (quality, safety, environment, IT);

– Services and products offered: check the catalogue, the website. The products and/or services offered must correspond to our expectations, what we need at a given moment and above all have the best quality at the right price;

– Delivery and intervention times: compliance with the conditions of service and deadlines are essential for a good partnership. The other party cannot miss the terms or deadlines, otherwise it will negatively affect our profit margin;

– Assistance technique: intervention times e capacity to ensure operational continuity;

– Finally, theeconomic aspect it is a criterion that must be weighted considering the other evaluation criteria and can never be the only factor to determine the qualification of a supplier.

Once the requirements of the products and services to be supplied have been agreed, the contractual terms and conditions must be shared responsibility of the supplier in the event of default.

2. Qualification of the international partner and evaluation

Once all of the above analyzes have been performed, the potential partner must be qualified. For example, each analysis can be assigned a score on a defined numerical scale, or a comment, so as to keep in mind the strengths and weaknesses of each counterparty. Finally, potential partners will be compared to elect and choose the most suitable one for our needs.

At this point, the actual partnership can begin: the selection and qualification process, however, does not end. Indeed, it is important to monitor its performance, bearing in mind specifically designed and periodically updated indicators.

Think of vendor control as a model static is limiting. The methods are to be evaluated from time to time based on the type of supply or service, the associated criticality and customer needs.

Performance can be evaluated on the basis of various criteria:

– Compliance: adherence to contract; compliance with procedures and protocols as provided;

– Quality of the service: relationships periodicals on delivery times, quality of products or services, business continuity;

- Safety: adequacy documentation, absence of accidents and injuries, training of personal;

– Environment: environmental permits, absence of environmental accidents;

– IT Services: data protection policy, absence of data breach.

3. Requalification and confirmation of the partnership

There qualification assessment of the international partners has as its main objective the verification of the conditions necessary to confirm the maintenance of qualification and enrollment insupplier register.

Companies that manage many suppliers, for example an assistance network, define a ranking associated with the performances obtained during the year, in order to provide economic incentives for those who perform better.

Only in this way can we think of developing the company, creating value and accelerating growth: the goal is to do increase earnings without affecting savings.

The experience of Panariagroup

We don't say all this, but our customers: it's the experience of Panariagroup in India. Founded in 1974, it is active in over 130 countries, specializing in luxury ceramics with the production of porcelain stoneware and laminated stoneware.

The company relied on Octagona to activate a joint venture in India, discovering the importance of being able to rely on international partners reliable and with unique characteristics. Here is the comment by Bartolomeo Vultaggio, Group Internal Audit and Investor Relations from Panariagroup:

“Thanks to Octagona's scouting skills we have identified the ideal international partner to start our business in India and set up a joint venture. Octagona followed us throughout the project with professionalism and competence. In addition to the real experience of the Indian market, we remained very satisfied with human relationships that have been built and developed”.

Do you also want to find out how to choose the international partners right and what factors should you consider? Then click below and contact us!

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