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How to Become a Supplier to Larger Manufacturers

How to Become a Supplier to Larger Manufacturers

By Caron_Beesley, Contributor
Published: October 6, 2014 Updated: October 9, 2014

Across the country, manufacturing and production is returning to the U.S. And it’s a trend that’s likely to continue thanks to lower energy costs, higher U.S. worker productivity, increasing labor costs overseas and, of course, the logistical advantages of U.S.-based production.

This is great news for the U.S. economy and the small business community.

Tapping into a large commercial supply chain and becoming a supplier to a big company can be a game-changer for small businesses – and the data proves it. Studies show that when a small supplier lands a contract with a larger company, its revenues increase in the region of 250 percent and they create 150 percent more jobs in only two to three years.

So how do small businesses take advantage of the positive outlook and wealth of opportunity that entering the manufacturing/production supply chain can bring? Here are two key steps any small business should take:

1. Have a Plan

Entering any new market requires planning. And for small businesses looking to join the supply chain of larger companies, getting it right and proving your credentials is essential. For help and guidance, check out this blog for tips on how to up the ante and start selling to larger companies.

2. Join the “Supplier Connection” Initiative

Small businesses should also be aware of a valuable public/private collaboration known as the American Supplier Initiative (ASI). The ASI is aimed at helping small businesses strengthen their revenue streams by gaining access to billions in combined supply chain spending by a consortium of America’s largest corporations including AT&T, Kellogg’s, Caterpillar, John Deere, Siemens, IBM and more.

How does it work?

ASI connects small businesses with large organizations through its Supplier Connection website. This free, cloud-based business-to-business community makes it easier for small businesses to market their services to Fortune 500 corporations, mid-market firms and other enterprises by giving them exposure and presenting their products and services to procurement agents of these companies. For the buyer, Supplier Connection makes the process of making a sourcing decision easier, faster and smarter.  

To participate, simply register here. Once approved, eligible businesses then create a profile to showcase their goods and services to participating buying members. You’ll also get access to business development tools, training and collaboration features that connect you with other small businesses and potential partners.

Since its inception, Supplier Connection has grown from six corporate Buying Members to over 25. These companies have spent over $2.5B with the small businesses that are a part of Supplier Connection. 

For more information, read the site’s FAQs and check out this quick video for an overview of how Supplier Connection works.

About the Author:

Caron_Beesley
Caron Beesley

Contributor

Caron Beesley is a small business owner, a writer, and marketing communications consultant. Caron works with the SBA.gov team to promote essential government resources that help entrepreneurs and small business owners start-up, grow and succeed. Follow Caron on Twitter: @caronbeesley