Becoming a supplier for a Fortune 500 company can take your company to the next level of expansion and growth. However, you need to master some steps in the process to achieve this goal.
This is an excerpt of the article by Rkapur published by Camino Financial on March 23rd, 2019.
The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks 500 of the largest United States corporations by total revenue for their respective fiscal years. Among these large companies, you’ll find Walmart, Apple, ExxonMobil, General Motors, or CVS Health, to name just a few.
Many Fortune 500 companies have Supplier Diversity Programs (SDP), geared towards giving subcontracting opportunities to small and minority-owned businesses.
But becoming a supplier for a Fortune 500 company, to one or more of the largest companies in the U.S. isn’t easy. The process of signing the contract involves dedication and hard work.
It would also require you to learn how the company that you are targeting operates. What are the conditions for getting approved as a supplier? How can you navigate the bureaucracy that you will invariably face? You will also need to understand how vendor agreements work and the steps that you need to take to enter into one.
However, remember that while the process can be complicated, the goal of signing supplier contracts with big corporations isn’t impossible to achieve. Remember that most probably the corporation that you will be dealing with could have an SDP as mentioned before and, if you meet the eligibility criteria, this could help you get on to the approved list of vendors.
Continue reading the original version here: How to get supplier contracts with fortune 500 companies
This giant multinational retail corporation is the world’s largest company by revenue. Walmart has over 100,000 suppliers. Many of these are multi-billion dollar companies themselves, but Walmart also has numerous small businesses in its list of approved suppliers.
The first step that you need to take to enter into a supplier contract with Walmart is to study its supplier checklist. Do you have all the information that you will need? After you have gathered the required details, you can go to this page to begin the qualification process.
Minneapolis-headquartered Target is the eighth-largest retailer in the United States. The company is associated with over 150,000 independent retailers across the country. If you think you have a product that will attract sufficient buyer interest, you could submit your product information to Mr. Checkout, a network of distributors that services independent retailers.
You can also register on Target’s supplier diversity program if your business is at least 51% owned and controlled by women, ethnic minorities, or specific other categories.
Costco Wholesale Corporation runs a chain of immensely successful membership-only warehouse clubs. The company’s supplier diversity program caters to African American, Asia-Pacific, and Hispanic American citizens among other categories.
You can also get your product into Costco by providing your product information and requesting the company to consider your application.
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The Bottom Line
Supplier contracts with Fortune 500 companies can propel small firms to the next level. Of course, it isn’t easy to win a contract with a big company. The process requires you to learn how to highlight your skills in a manner that gives the buyer the confidence to deal with you.
However, if you do manage to get your firm on the approved list of suppliers of a giant corporation, it could be the beginning of a new phase of growth for your business. Give it your best effort, and remember to be patient. If you are successful in winning a contract from a Fortune 500 company, the rewards can be tremendous.