Starting the Year With New Suppliers? Here’s What Procurement Teams Should Consider

Starting the Year With New Suppliers? Here’s What Procurement Teams Should Consider

The beginning of the year is when many procurement and operations teams take a closer look at their suppliers. Budgets reset. Contracts come up for review. Frustrations from the previous year are still fresh.

At the same time, January is also when teams are most cautious. Even when a supplier has caused issues — late deliveries, inconsistent quality, or poor communication — making a change can feel risky. The cost of disruption often feels higher than the cost of sticking with something that isn’t working particularly well.

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The tension brought about by change, or the angst that often comes along with gratuitous changes has the potential to lead teams to evaluate new suppliers using the wrong criteria.

Why the Start of the Year Drives Supplier Reviews

Early in the year, organizations tend to ask a familiar set of questions:

  • > What didn’t work last year?
  • > Where did costs creep up?
  • > Which suppliers created unnecessary friction?

These are the right questions. But because operational stability matters so much, the instinct is often to default to what feels safest — well-known brands, large catalogs, or the lowest quoted price.

Those factors are easy to compare. They’re also poor predictors of how a supplier will actually perform once the relationship begins.

What Teams Think They’re Evaluating

When procurement teams review new suppliers, the focus usually centers on:

  • > Price

  • > Brand recognition

  • > Catalog size

  • > Contract terms

  • > Payment flexibility

All of these matter. None of them guarantee a smoother day-to-day experience.

Most supplier frustration doesn’t come from the invoice. It comes from everything that happens after the order is placed.

Where Supplier Relationships Actually Break Down

Across industries, the same issues tend to surface again and again:

  • > Products shown as available that aren’t

  • > Orders arriving incomplete or incorrect

  • > Substitutions made without communication

  • > Slow or unclear issue resolution

  • > Inconsistent pricing or product data

  • > Time spent chasing answers instead of doing real work

These problems don’t always show up immediately. Often, things look fine at the beginning — until volume increases, urgency spikes, or something goes wrong.

That’s when the real cost of a supplier relationship becomes visible.

What Matters More Than Price

Teams that have lived through supplier changes often value different things than those who haven’t. Over time, priorities tend to shift toward:

  • > Reliability and consistency

  • > Clear, proactive communication

  • > Transparency when issues occur

  • > Ease of reordering

  • > Accurate product and pricing data

  • > Respect for the customer’s time

These factors rarely show up in a pricing comparison, but they have a significant impact on how smoothly operations run.

How to Try New Suppliers Without Adding Risk

Trying a new supplier doesn’t have to mean introducing unnecessary risk.

A more measured approach can go a long way:

  • > Start with a limited category or use case

  • > Pilot during a lower-risk period

  • > Evaluate responsiveness, not just fulfillment

  • > Pay attention to how issues are handled, not whether they happen

  • > Measure friction, not just short-term savings

The goal isn’t perfection. It’s predictability and trust.

A Final Thought for the New Year

The best supplier decisions are rarely driven by price alone. They’re driven by confidence — confidence that orders will arrive as expected, issues will be handled quickly, and problems won’t turn into recurring distractions.

As teams reassess suppliers at the start of the year, the most important question often isn’t “Who’s cheaper?” - It’s “Who makes our operation easier to run?”

That answer tends to matter long after the new year begins.