Discussion 5 - 12 Hours From Now. Maximum Time

The major points which are considered before selecting the suppliers are, variety in designs to offer to the customers, good quality control to meet the expectations of the customers, cost effectiveness, the prices as if the prices are higher than the local suppliers then it would not be economically viable to buy from outsourced modes.  The order quantity as the new venture, initially the order quantities will be lesser and the customization as different customers has different needs and preferences.

The main risk associated with their selection of suppliers are the pricing, product quality and the defective products.  While selecting any supplier, these elements must be analyzed closely as these not only have the potential of hampering the business but can also result in negative publicity.

In order to overcome these risks, the companies can have a look at the production unit of the supplier, what kind of services are being provided.  Comparing the offerings of two suppliers and taking the feedback from the existing customers of these suppliers can really help in narrowing down the risks.