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Importance of preferred supplier status

When you become a preferred supplier, and your proposal always sits at the top of the list. Most often, you bring home the bacon while your competitors go home empty handed. But how do you become a preferred supplier? This video will tell you how!                            

In the IT professional services firm industry, who would not want to be considered a preferred supplier by their clients. Some of the reasons for wanting a preferred supplier status is, it is an enabler for long-term contracts. This is an increasing trend for large enterprises and also government departments or organizations. For those who are successful at qualifying, it generally leads to significant benefits for your firm. So how do you become a preferred supplier? Well you have to put the work in, target the government agencies or organizations that promote the practice of ‘preferred suppliers’. This will not guarantee you work, but you should expect to get the chance to bid on all relevant projects for your company.

A preferred supplier is a company that has an agreement with another company to provide it with products or services it needs.

Such agreement is often common in government organisations but other industries have adopted it because it saves them time and money.

When an organisation has a preferred supplier list already, they don’t need to go through the process of sorting out and qualifying possible suppliers for a certain project.

As an IT services firm, getting into a preferred supplier status spells a lot of benefit for your company.

Why Become a Preferred Supplier?

Here are some benefits of getting on a preferred supplier list:

  • It builds your credibility. 
  • It puts you on the top of the list when clients are looking for providers.
  • It helps you land projects with other companies.
  • It makes you competitive.

 

Becoming a preferred supplier means that a client will look to you every time it needs your product or service. 

And depending on what the company needs, it might need a lot of what you’re offering. 

How to Become a Preferred Supplier?

The IT industry is a competitive market. 

If you think you have something unique to offer, so do your competitors.

So how do you edge out the competition?

It can start with a simple question, “How can we be a better provider?”

You have to understand that the way your clients are using your product or service is different from what you think.

Therefore, you have to understand the business priorities of your clients at the moment. 

And these priorities are subject to change, depending on several factors.

So asking your clients regularly can give you insight so you can align your product / service to their needs.

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