How to become a product supplier. How to open a wholesale business

What does an ideal supplier look like through the eyes of a retailer? Dmitry Motorin has worked in retail for more than seven years, and knows the ironclad rules of network procurement, since he himself took a successful part in their creation.

Retail chains are growing even during a crisis. For the largest Russian retailers, 2015 was a record year in terms of the speed with which their market share increased. According to analysts, the TOP 10 largest FMCG chains accounted for 24.3% of the market versus 21.6% a year earlier. Given the overall decline in retail in the country by 8.5%, such achievements look impressive and change the balance of power in retail.

In 2015, the share of the ten largest retailers in DIY retail exceeded 30%. The total volume of Hard&Soft retail last year was estimated at 1 trillion. rubles, with a total market capacity of 4.3 trillion including B2B and construction. It is logical that, despite the market decline in the last two years, this sales channel is in demand among manufacturers.

However, as one of the heroines says in the famous film “Moscow Doesn’t Believe in Tears”: “to become a general’s wife, you had to marry a lieutenant and travel with him to garrisons.” Does this mean that the time of new product manufacturers who dream of selling their goods to retail chains is gone forever? Not at all! Niches remain, rotation of suppliers on shelves in chains occurs continuously.

Then the most tricky question of our days arises: “How to sell goods to retail chains?” The author of this article has worked in retail for more than seven years, and knows the ironclad rules of network purchasing, since he himself took a successful part in their creation. He devoted more than eight years to maintaining key retail clients and managing their sales. Therefore, the entire network-supplier communication process is known from the first person and on both sides of the fence.

My surprise at these methods became a good motivation for creating this article. Tactics elevated to the level of strategic decisions have always amused me. The entire negotiation strategy consists of three to four meetings with buyers and their superiors over six to nine months. If there was no result at the second meeting, then in practice it is impossible to change this.

From personal experience as a buyer, I can firmly say: if the supplier is not needed, he will not get into the network! The worst option is to look for a way to put pressure on the buyer from above, through the authorities. Apart from problems in the near future and being included in a personal black list with a predictable result, nothing good should be expected. And you yourself will give the reason, you know yourself.

To prevent the role of negotiations in achieving results with the network from becoming key and decisive in the fate of the company, let’s start with basic concepts. Here we will outline a simple and logical system of actions for the supplier to achieve real results, instead of purchasing a subscription to annual staff training on effective negotiations with network clients. I appreciate good preparation for negotiations and specifics, but tactics should not be overestimated!

Let's start with the main question of this whole story: Why do you want to become supplier network retail? The answer is not as simple as one might think. The fact is that a retail chain has two tasks: to increase its sales turnover and at the same time earn maximum profit.

The retail chain solves the first problem by reducing retail prices. It solves the second problem at the expense of the supplier’s profit, that is, you. Partial rotation of suppliers and goods on the shelf is a common process of making up for the natural loss of suppliers, that is, their voluntary refusal to work with the network or outright bankruptcy.

In my practice, if the share of retail chains in a manufacturer’s sales is over 30%, this is a serious signal for diversification of the entire business; at a minimum, it is necessary to increase the number of other clients, look for a new product, develop your retail, create and sell a franchise. Sitting and waiting that everything is fine with you is tantamount to Anna Karenina’s action at the end of the book of the same name.

If you have passed the first test and are firmly convinced that retail chains are the promotion channel you need, take step two: estimate the cost of the retail channel. Make an economic assessment of the cost and profitability of such work, determine the threshold margin value that your company can handle. To do this, you should go to an introductory meeting with buyers, find out potential working conditions, or find out approximate working conditions from your industry colleagues, not competitors. It is not difficult!

There are always a number of optimists in the industry who, when negotiating, ask me the question: “Who do you know in the networks that you can call right now?” This question reflects people’s distorted Soviet idea of ​​the “thieves’ raspberries” of buyers or the romantic misconception about the “guild brotherhood.” This is a dangerous factor! Even if the founders of your company include the wife or great-nephew of the general director of the network. Everything changes and so do people, especially in leadership positions. And yesterday’s “blat” will become a stone around the neck of a company sinking to the bottom of ruin. Therefore, the best and most sustainable option is to conduct relations with the network in such a way that the “buyers” change, and your product remains on the shelf.

So how do you get into retail? There are only two civilized ways to enter the network. The first method is based on two key parameters: you have an attractive product from a network point of view at an attractive price. All other parameters of the 6P marketing mix are just as important:

• Place. For example, the possibility of delivering goods by the supplier to the distribution center or directly to stores,
• Promotion. For example, the ability and desire, in addition to a low delivery price, to give a special price for a product during promotions,
• People. For example, the presence of competent and efficient customer service managers who resolve all issues using the “one window” principle,
• Processes. For example, the possibility of prompt additional delivery of orders, or the speed and clarity of approval, confirmation, processing of network requests, error-free preparation of sets of accompanying documents.
• At the same time, the main factor in this story remains the Product-Price factor. If neither the first nor the second parameter is anything outstanding from a network point of view, then don’t waste your time and theirs. Work on refining your product and identify opportunities to change the price. The principles of creating and setting up a product are quite simple, but it requires a solid product creation specialist, that is, a marketer.

If you have a product, its value for consumers/buyers is tested and understood, then at a good price you become in a superposition. Any network will be happy to receive your product and make a profit on it.

If the first option is not possible for a number of reasons, and the product and prices are very close and similar to the conditions of your online competitor, then there is a longer, but equally effective strategy of the pursuer. You indicate your desire and readiness to cooperate with the retailer and go into standby mode when a convenient opportunity for replacement arises. Here you need to show tact, patience and persistence. The chains rotate their assortment at least once a year.

You should use this time to your advantage. Your task is to find out all the details of the competitor’s (possibly a circle of competitors) work with the network, talk to the maximum possible number of people on the network working with their product. If you accurately determine the weaknesses of your opponent, then during the waiting time you will be able to strengthen precisely these points in your work. During the next negotiations, you will now be able to show them as your solid plus.

There are also small tricks that you can use to gradually weaken your opponent’s position on the network. In fact, knowing the rules and bureaucratic processes in a retail chain, you can regularly attack your competitor with more interesting promotional offers. The likelihood of the network switching to you quickly is small, and your bold prices can force the network to put pressure on the enemy, reducing its already low profitability.

Subsequent conflicts with buyers, as we remember, also have their effect. The end result, after a while, is that you are more comfortable and desirable online than your hapless colleague. However, be careful. Outright lies will be revealed and will leave you without a chance to win. In addition, when you stand on the shelf, you will also need to protect yourself from attacks from competitors. Your strength is in your product. If the consumer loves you, strengthen this love and failures will bypass you.

There are uncivilized options for entering the network, again coming to us from the distant period of non-market relations, when goods were “obtained through pull.” In most networks, purchasing processes are set up correctly and the system does not react to such proposals, since purchasing decisions are transparent and made by a large number of people.

About seven years ago, when I started sharing my experiences in sales and purchasing management with my colleagues, I made an interesting material that describes the portrait of an ideal network supplier. This list at one time was quoted and helped a large number of companies. Today I offer a more modern version of it to our readers.

An ideal supplier through the eyes of a retail chain, in my experience and belief, should look like this:

• Provider is a brand. I don’t call a brand a trademark, of which there are many on the market, but the stable perception of this brand by buyers, consumers, and clients. If you managed to make the company's product strong, interesting, and beneficial to clients and consumers, congratulations! You own a valuable resource, you have a brand that people go to the store for and willingly buy.
• Manufacturer. A controversial thesis if you distribute goods from a third-party manufacturer. But if you have exclusive distribution rights to a good product, then this is also a very good position. Why networks are more willing to work with manufacturers. The answer is obvious - this is a sure sign that the network will receive maximum profit from working with you. The network is not at all interested in your profit, but if you produce it yourself, there is a high probability that the price for supplying the goods will be the lowest, and you will still be able to survive.
• Logistician Everything is quite simple here. The chains have a large number of stores in different remote cities and regions. The goods in the warehouse or production network are not needed with very rare exceptions. If you have a developed and managed distribution network, can ensure uninterrupted and high accuracy of deliveries, and have this important ability in our country to fulfill customer orders, then honor and praise to you from the network and consumers!
• Partner. The point is not key, but important. No matter how the formal process of your communication with the network develops, people are present in it. In the course of work, moments always arise when it makes sense to make concessions or help in a difficult situation. And in a ratio of three to one. For three times of your real help, you can theoretically expect one step forward from the network. In other words, your work style creates a subtle intangible asset called reputation. The higher it is, the stronger your position.

Experienced. The question is no longer key, although it undoubtedly adds advantages to your proposal. If you are currently working with a particular retail chain, for a new chain this means that you will not have to explain a large number of truisms or give answers to questions that are inappropriate from the point of view of the chain. This is a definite marker for any retail that the company is adequate and it is possible to work with it.

At the end of this slightly chaotic article, I would like to once again emphasize the main idea of ​​my answer to the question posed in the title. How to sell your product to retail chains? The answer is quite simple.

There are two popular sales options:

1. First produce, and then think about where and how to sell it all. As funny as it may seem, 80% of your market does exactly this. This should inspire you because you don't have to compete with the entire industry, just 20%.
2. A more complex option is based on creating and constantly working on your product to please consumers. 20% of your market does this. I recommend that you search for your business model only here. There are many advantages - it’s more interesting, more effective and the effect lasts longer.

If you follow the path of implementing the second model, a situation may arise when the networks themselves turn to you for goods. Don't believe me? But I remember such options and there are many of them. Good luck to you and your marketer!

Master R2, Business Architect

We welcome you, dear users and visitors of the business magazine “site”! The topic of today’s publication is “Business with China.” We will tell you where to start, how to find and establish optimal mutually beneficial cooperation with partners (intermediaries), and also provide a list of popular Chinese trading platforms where you can purchase goods from China in bulk and consider the possibility of reselling goods without investment.

From the article you will learn:

• Is it possible to start a business with China without initial capital?
• Why choosing Chinese partners is beneficial for Russian entrepreneurs;
• Step-by-step recommendations for organizing a business;
• Advantages and disadvantages of the largest Chinese trading platforms (Aliexpress, Alibaba and others);
• In-demand products from China that can make a lot of money.

More and more Russian and other entrepreneurs are turning their attention to China to make their activities more reliable, profitable and competitive.

Huge assortment manufactured products, as well as low prices with quality improving everywhere, they leave no choice for beginning and experienced entrepreneurs when identifying partners for cooperation.

After reading this article, businessmen of different levels will be able to familiarize themselves with the “rules of the game” in this market, even a beginner without initial capital, after reading the article to the end, will find an opportunity to earn money in cooperation with partners from China.

How and where to start your business with China, what are the advantages and benefits of a business reselling goods from China, is it possible to open a business without investment, and so on, read the article below

1. Business with China - is it possible to start a business with goods from China from scratch 📈

Products made in China occupy one of the leading positions in terms of sales and popularity in global markets. And if several decades ago Chinese products were introduced only in the niche of budget products Low quality , then at the moment the range has been expanded up to up to elite samples with the highest consumer properties.

Competitive prices, as well as a huge selection of various products provide entrepreneurs with wide opportunities to earn good money.

The process of interaction with China is not complicated, and every businessman with fundamental knowledge and entrepreneurial experience can successfully work in this market without an initial investment (or with minor investments).

General scheme of work with China:

1. searching for a cheap suitable product;
2. delivery to Russia;
3. selling and making a profit.

At the same time, many beginning entrepreneurs causes unnecessary anxiety customs clearance, product certification, taxation And a number of other related factors. However, having studied all the necessary information, businessmen should not have any difficulties when interacting with Chinese manufacturers and intermediaries.

☑ Delivery, customs clearance and certification of goods can also be entrusted to a third party.

Trade - the best option for starting a career in business, and having companies as partners that will help supply affordable and in-demand goods to Russia, provides unlimited opportunities for earning money and developing your business.

Business from scratch in this segment is very limited and involves the resale of goods through a dropshipping system. Read about this and much more further in the article.

2. Advantages and benefits of doing business with Chinese manufacturers 📑

In recent decades, there has been a trend of increasing attention of the Russian business community to the Chinese manufacturing market. Manufactured in this Asian country the entire list of goods necessary for a person to live.

Advantages and benefits of cooperation with Chinese manufacturers

For years, the stereotype formed by the average resident of the country that Chinese goods are of low quality is gradually being eliminated. An increasing number of buyers find themselves satisfied with the quality of products from China, with constant low price compared to competitors.

Even in the traditionally competitive high-tech market, where “they rule the roost” Western European, North American, South Korean and Japanese manufacturers, Chinese companies managed to occupy a significant market share. At the same time, the quality of manufactured goods is increasing.

The development of modern means of communication and technology will allow entrepreneurs to significantly reduce the initial costs of cooperation with Chinese manufacturers or intermediaries.

It is also worth noting that enterprises from China trade with countries around the world and constantly introduce new products to the market and use innovative ideas. By carefully studying the demand among the population and supply from China, the entrepreneur has the opportunity to be the first to introduce new products to the Russian market, which will significantly maximize profits.

The main advantages of doing business with China

The attractiveness of partnerships with Chinese manufacturers and intermediaries is determined by a number of factors:

1. Large range of products. China's share in most economic sectors is from 40% and more in relation to global production. This determines a significant variety of products.
2. Low prices. One of the main factors in the competitiveness of the Chinese economy. The low cost of goods is due to: relatively inexpensive labor, the presence in the country of virtually all types of necessary raw materials, the presence of a large number of production facilities for various components, as well as significant competition among enterprises. All this allows entrepreneur, supplying and selling goods from China, set the price for the goods at a profit up to 1000% and at the same time leaving the cost attractive for the buyer.
3. Purchasing an exclusive product. In the process of studying the specifics of the Chinese market, as well as with significant volumes of supplies, manufacturers of exclusive products that have significant demand, but are poorly represented in retail trade, may be interested in cooperation with a Russian company.
4. The desire of Chinese partners to cooperate. Great competition and price wars among Chinese manufacturers and intermediaries force them to be attentive to the needs of customers: start cooperation with small volumes of goods, provide discounts on samples, provide convenient conditions for the delivery of goods and other preferences.

Let's look at the main benefits of doing business with China:

• First of all the consumer wants to receive the product as quickly as possible, as well as evaluate its appearance and quality. When purchasing goods to order in Chinese online stores, the buyer cannot take advantage of these advantages and many customers find it more convenient to buy goods from Russian sellers.
• The second factor is a large number of Internet sites and products. It is difficult for the buyer to navigate and purchase the required quality product. To do this, you need to evaluate the professional qualities of the seller, take into account the cost and delivery time, and for this you need to have certain knowledge and experience. In this regard, a significant part of clients prefer to buy from Russian entrepreneurs.

To check the integrity of the seller, understand the functionality of the trading platform, calculate the cost of delivery and the product itself, knowledge and skills are required.

Many will want to order the necessary goods on a Russian-language website, since there is always the opportunity to call and clarify with the seller all the questions and nuances of purchasing the goods, negotiate the terms of delivery of the order, and so on.

Your own business with China - where and how to start your business with China

3. How to start a business with China - 10 stages of where to start your business 📝

In order to establish business in cooperation with Chinese partners, you should consider 10 simple steps (stages) for successfully launching a business resale of goods from China.

Stage 1. Analysis of the list of business cooperation models

Most Russian entrepreneurs cooperating with Chinese companies use a number of time-tested models of interaction with partners:

• Wholesale sales of products;
• Sales of products through an online store;
• Dropshipping;
• Own sales through a retail outlet;
• Joint purchases of goods from China.

1. Wholesale sales of products (offline)

By establishing cooperation with Chinese partners, an entrepreneur has the opportunity to sell goods in bulk with significant profitability. The Chinese market provides a large list of various products, and choosing a product that is in demand will not be difficult for an entrepreneur.

The work algorithm includes a number of actions:

• Selecting the optimal wholesale supplier;
• Searching for retailers and establishing cooperation with them;
• The client determines the assortment he needs, makes an advance payment, and the entrepreneur, purchasing the products, ensures delivery.

A businessman who has established supplies from China should not have much difficulty finding partners in Russia.

The only thing that would be advisable is to use additional communication opportunities via the World Wide Web: social media, notice boards, and also take advantage of a very effective way to promote products - contextual advertising.

Question 2. What to sell in an online store and which goods from China can provide maximum profit in the near future?

Many novice entrepreneurs ask themselves when starting a business in China: what to sell and who to sell their goods to?

In the foreseeable future, there are no countries that will be able to compete with China in terms of the range of products offered, as well as in price.

The country's industrial base is constantly grows and develops, constant subsidies help Chinese entrepreneurs improve the quality of their products and optimize costs.

At the same time, a significant level of competition ensures a fairly low price level.

Review of products sold from China

So, which Chinese goods can provide an entrepreneur with a high level of income?

1. Shoes and clothing

Products in this category are relevant at the moment and will always be in demand. In Russia, as in most countries of the world, for a significant part of the population the main factor when purchasing is price, and then everything else.

The cost of shoes and clothing from the Celestial Empire is lower than that of competitors with constantly improving quality and a large assortment of offers.

Another factor in the popularity of Chinese clothing and shoes is counterfeits of well-known brands. However, the quality of goods (as well as price) can vary significantly.

Many Russian consumers want to assert themselves by purchasing “ branded"thing for relatively little money.

2. Household appliances and electronics

Russians do not have much confidence in Chinese technology, but again the price factor has an impact and there is significant demand for this category of goods among the population. The purchase price from partners is very low and the entrepreneur has the opportunity to earn good money

3. Perfumery

There have never been famous perfumers in the PRC, but the country is very good at copying fragrances, bringing them to the maximum similarity with the original. At the same time, a similar branded product costs 10-20 times more.

The reaction speed of entrepreneurs in China is very fast: A new branded fragrance appears on the market, and Asian craftsmen are already in full swing creating an analogue.

4. Accessories

Watches, women's and men's bags, wallets, and phone accessories are very popular and best-selling products. Counterfeits in this category of goods are difficult to distinguish from the original. Substitutes for well-known brands are always in great demand among the population and their supplies are very cost-effective.

5. Souvenirs

Most of the souvenir products in the world are of Chinese origin. Tourists and travelers always purchase these products.

Products are made from glass, ceramics, plastic, which allows it to retain its consumer properties for a long time, be stored in warehouses (garages) and sold gradually.

6. Everything for cars

The total number of vehicles in Russia is increasing from year to year, and the cost of car maintenance is also increasing: technical inspection, repair costs, insurance, fuel. And the objective desire of motorists to save on related products is quite understandable.

Sale spare parts, brushes, covers and automotive video and audio equipment will allow the entrepreneur to satisfy demand and provide himself with a significant level of income.

8. Conclusion + video on the topic 🎥

Business in cooperation with manufacturers and suppliers from China with rational organization of work is very profitable, especially thanks to intermediaries with low commissions, ordering goods from China becomes much easier and more convenient. The price difference between goods between the Celestial Empire and Russia can be 500 % and more.

By choosing the right niche and working with reliable suppliers, an entrepreneur has the opportunity to build a stable, profitable business.

Many young and successful entrepreneurs have already launched their startup projects, where a certain part of the business is occupied by goods from China. we wrote in one of our previous issues.

Dear readers of the business magazine “RichPro.ru”, we will be grateful if you share your experience and comments on the topic of publication in the comments below. We wish you good luck and success in business with China!

Systematic career growth in many areas of activity over time makes successful employees think about their own business. The reason for this may be the desire to finally work for oneself or the rejection by higher management of sound ideas regarding the development of the business, but the result, as a rule, comes out the same: a person begins to think about becoming a supplier of certain goods or services on his own.

Goals and objectives of the future supplier

A person who intends to become a supplier of a quality product or service, having established himself as a reliable partner, must first of all carefully study the product that he is going to offer. Therefore, you should not immediately get into business without working in the relevant profession for a certain amount of time necessary to clearly understand the specifics of the market. While you are an ordinary employee, an assistant to the head of a department, or the direct leader of a group of workers, you have time to:

• product research;
• acquiring a large customer base;
• obtaining access to manufacturing plants or official dealers;
• market assessment;
• establishing business connections.

Knowing the specifics of the product and the market, constantly communicating with customers, you will be able to draw the right conclusions about what product you can surprise your future customers with and compete with other companies. You also won’t have to start everything from scratch - you will have all the information at your disposal: from partners and clients to knowledge of logistics routes, product costs and other financial details. With this data, you can get off to a strong start in becoming a supplier that major customers seek and value.

The other side of the coin for suppliers

Of course, no type of business can consist only of positive aspects, since any investment is, first of all, a risk. But there are several more difficulties that you need to be prepared for:

• searching for funds to form start-up capital;
• tracking and control of all stages of delivery personally;
• selection of professional and hardworking personnel;
• constant competition;
• continuous market analysis and willingness to make quick but correct decisions.

Thus, only a person with excellent business acumen, who is well versed in analytics and finance, while being a sociable, stress-resistant and strong-willed person, can become a quality supplier.

Getting a big client is easy. It is enough to offer him the best price. But if you're a small business, this probably isn't your option. You will have to prove that your products or services are unique in some way.

I’ll tell you how to achieve this, using the example of the company where I work. Volvo Penta has 26 dealers. These are small companies of 5–15 people that service and repair diesel engines. Working with large clients did not seem to them a very profitable occupation.

We have been establishing cooperation between our dealers and large companies for almost five years. As a result, in 2015 we showed an increase of 25%, although the market dropped by an average of a third, and we continue to grow. Mainly due to deliveries to large shipping companies.

Step 1: Find problem areas

Small business representatives rarely ask how a large company works because they are afraid of unclear terms. Entrepreneurs get confused when they hear the expression “generate cash flow.” This problem is easily solved by courses like “Finance for “non-financial” managers” and “Management Accounting”.

Our dealers needed to understand how diesel engines affect customer income and what problems exist in this area. Clients love the “buy cheaper, earn more” scheme, but it doesn’t always work. The purchasing department of one container terminal bought a Chinese starter for the loader, which was four times cheaper than ours, and our dealers could not do anything about it.

When we looked up the operating statistics, we saw that the Chinese starter failed four times more often. Machine downtime has increased, and the cost of purchasing starters has approached the cost of original ones. Replacement cost three times more. Due to savings, the company was losing money - this is what we showed to the client, after which we closed the deal.

Step 2: Offer an effective solution

It is not enough to say that your decision can improve your cash flow. We need to prove this with numbers. This is one of the key problems: few people do detailed cost calculations, including the cost of equipment downtime due to breakdowns.

In Russia they believe that downtime can always be “caught up” - for example, by going on the night shift. In Western accounting, downtime is an irrecoverable loss: time cannot be turned back. Assessing losses is almost like financial consulting, and many entrepreneurs think like this: how can we, so small, advise such big ones? We need to overcome false modesty.

If an entrepreneur is a professional and an expert, he should consult a large company in his field. It is ideal if a small business at this stage can offer not only a one-time solution, but also a long-term one.

Our dealers showed the customer that their parts and services would reduce downtime by so many percent over a given period, which would result in an improvement in cash flow by so many percent. To achieve this, dealers offered to transfer the equipment to regular maintenance. They advised keeping records of each piece of equipment, training maintenance personnel, and opening a warehouse for frequently used spare parts. The dealer took care of regular replenishment of the warehouse, and invoices for spare parts were received as needed, taking into account seasonality.

Step 3: Sell ​​services to decision makers

The easiest way is to negotiate with purchasing department managers, but they never study the tasks comprehensively. It is a little more difficult in our market to reach employees of equipment operation departments. They see the problem more broadly, but they do not manage the finances. If you want to make a deal, go higher.

In our case, if the dealer has completed the first and second steps, it remains to understand who the purchasing and operation departments report to. Once in a meeting with such a person, the dealer should not sell spare parts or repair services. This is obviously a losing strategy. You need to emphasize that what is at stake is the company's cash flow and its profits.

Based on such a proposal, the client will formulate a task for the tender. Of course, it still needs to be won. But if you have prepared well, you will have few competitors.

Government procurement- This is the main way to provide all possible needs of the country. It is with the help of government procurement that educational institutions and any other organizations are provided with food in a timely manner. Therefore, the legislative system provides for such a status as a government procurement supplier, who must produce or supply products to meet existing needs.

Legal requirements and norms

Government procurement is strictly regulated by certain regulatory documents, including a special Federal Law, and must be carried out in accordance with a number of requirements. The main and most important of the imposed conditions is the mandatory regulatory recording and argumentation of each purchase, regardless of the nature of use and purpose.

Which companies will become suppliers is determined by customers based on several criteria. First of all, a potential buyer collects and analyzes information about all candidates for the role of suppliers. After all possible proposals for government supplies have been recorded and approved on specialized resources, an agreement on future supplies is concluded or auctions are held, at which the most worthy candidates are determined in accordance with certain criteria.

Any company can become a government procurement supplier if a number of conditions are met. The most essential feature of an enterprise vying for this role will be visibility and transparency of information.

Before submitting your candidacy for the role of government procurement supplier, or organization, you should register with a specialized structure - the Unified Information System. Further, when a business entity becomes a full-fledged member of this system, it will receive notifications about opening online auctions. If you wish to participate in one of them, any company can submit an official application. But before this, you will have to obtain special accreditation by submitting a certain list of documents to the site specified by the customer.

How to become a government procurement supplier: stages and algorithm

To conclude a contract between the customer and the future supplier, a number of documents must be submitted. A company that expects to take on the role of a supplier must have the status of an individual or legal entity, in support of which it must provide documents according to a certain list:

• constituent documents of an individual entrepreneur or LLC;
• excerpt from the Unified State Register of Legal Entities or Unified State Register of Individual Entrepreneurs;
• personal data of an individual business entity;
• personal documents of the head of the company, if the supplier is a legal entity.

In addition to this basic list, mandatory for everyone, some additional documents may be required for submission, which in some cases are required to be submitted by customer companies.

To be able to conclude contracts for supplies under government procurement, the customer, in turn, must provide confirmation of the availability of a sufficient amount of funds. Including 0.5-5% of the initial marginal cost of the contract must be provided by the customer company’s own funds.

Wholesale supplies, additional features

An enterprise specializing in wholesale supplies can apply for cooperation with large retail chains. To conclude an agreement on wholesale supplies, it is necessary to provide the potential customer with favorable terms of cooperation, guaranteeing lower prices in comparison with competitors and the widest possible range of goods.

Among other possibilities, the law allows an enterprise to become the sole supplier. But for this it is necessary that the procurement meets the requirements, for example:

• if the buyer belongs to the category of cultural or entertainment institutions, he cannot purchase goods from one supplier for more than 50% of budget funds. In specific figures, this limit is 20 million rubles.

Correctional institutions can become the only supplier, in accordance with regulatory documents. Suppliers of medicines also fall into this category, but also within the limits established by law.

In cases established by law, belonging to emergency or force majeure situations, a faster procedure for concluding a public procurement contract is possible. Such emergency circumstances include measures to eliminate natural disasters, man-made disasters, the need to supply electricity or other resources or purchase software in order to introduce scientific and technical innovations.