You’ve poured your heart into creating a genius design concept. Now you need to find, customize, order, and manage the delivery of the many components required to bring that concept to life. This includes furnishings, decorative accessories, flooring, hardware, window treatments, and more.
This time-consuming, and often complex, process is known as sourcing and procurement. But before we dive into how exactly to perfect your process, let’s define what the terms Sourcing and Procurement actually mean.
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Interior design sourcing and procurement 101
Sourcing is the process of identifying, assessing, and selecting suppliers and vendors who can provide the required goods, services, or materials needed for your project. It involves researching, evaluating, and establishing relationships with potential suppliers to acquire the best quality products or services at the most competitive prices.
Procurement involves the actual acquisition, purchasing, and management of those goods or services, which you identified while sourcing. It covers all the steps of purchasing, including transactions and contracts, as well as managing relationships with your chosen suppliers.
7 ways to excel at sourcing and procurement
So, how can you become a master of sourcing and procurement? Read on for our 7 best tips.
1. Set and manage clients’ expectations
The foundation of a successful sourcing and procurement strategy begins with transparent communication. To avoid conflicts about pricing, be upfront with your clients about the whys and hows of your fee. Help them understand what exactly goes into your process, and how it provides them with a higher level of quality, customization, and service than purchasing from retailers. By setting realistic expectations with your clients early on, you establish trust, head off price shopping, and ensure a smoother collaboration.
2. Do your research
In the world of design, knowledge is power. Staying up to date on emerging trends, materials, and suppliers will give you the tools and the know-how for more mindful and efficient sourcing. Engaging with industry publications, like Architectural Digest and Business of Home, attending trade shows, like High Point Market and Maison et Objet, and leveraging online platforms, like Chairish and 1stdibs, which are dedicated to design inspiration, will keep your finger on the pulse of the industry.
3. Establish and cultivate to-the-trade relationships
Building strong relationships with to-the-trade vendors is invaluable in creating customized selections for your clients, negotiating better terms, gaining access to exclusive offerings, receiving top-notch service, and managing challenges with ease.
So when it comes to establishing these relationships, where do you begin? Most vendors, showrooms, and wholesalers include trade account applications online, though some require you to call them directly. To apply, you’ll need the following:
- Proof of business
- Current business or state professional license
- Tax ID or EIN
- Resale certificate (You apply for this directly with the state where your business operates.)
- Business bank account
- Accreditation certification (For example, NCIDQ, CCIDC, or proof of membership in a professional organization like ASID, AIA, or IIDA.)
The application process usually takes between 2-5 days to complete.
Once you’ve established these relationships, remember to maintain open lines of communication and showcase mutual respect. Investing in nurturing your connections can lead to long-term partnerships that extend well beyond a single project.
4. Source smart
If setting up individual trade accounts with each vendor feels too time-consuming or you prefer to avoid managing product orders, consider using one-stop shop marketplaces like the ones we’ve listed below.
With these platforms, you can access hundreds of trade vendor collections in one place instead of having to set up individual accounts.
These companies not only give you access to high-commission products, but they also take over order placement and management so you don’t have to. You’ll get proactive order updates throughout the process. Make sure to also partner with a receiving warehouse to store incoming furniture until you’re ready for installation.
Ready to be inspired? Interior designer Kimberly Horton shifted from a 100% retail purchasing model to 80% wholesale. By making this shift, plus raising her design fees, she increased her annual revenue from $8K in her first year of business to $200K+ by year 7. While Kimberly’s process was gradual, she still managed to double or triple her net income every year.
Check out our in-depth webinar on shopping wholesale with Kimberly Horton for a fool-proof roadmap to boosting your profits.
5. Use time-saving software
Streamline your operations with specialized software, like DesignFiles. Using DesignFiles during the sourcing stage enables you to save items in seconds via a handy browser clipper, generate detailed product lists, let clients approve and decline products, and create branded tearsheets for any product. During procurement, you can use DesignFiles to submit and track product orders, keep clients in the loop, making your projects run much smoother.
6. Implement systems
Consistency is key. Develop standardized processes for sourcing and procurement that can be replicated across projects. Whether it’s creating templates for purchase orders (DesignFiles can help with this!) or establishing a workflow for vendor communication, having repeatable systems in place will supercharge your efficiency and minimize errors. When designing your systems, a good place to start is by breaking down into steps the processes you follow for both Sourcing and Procurement, and creating checklists to ensure no detail slips through the cracks.
7. Curate an onsite library
DesignFiles is also a great resource for building a virtual library, which you can draw upon for future projects. I also recommend curating a collection of actual physical samples, featuring materials, fabrics, and finishes. This resource will help clients touch, feel, and experience the potential elements of their space firsthand, and streamline their decision-making.
Key takeaways
Ultimately, it’s important to remember mastering sourcing and procurement is an ongoing journey. It requires adaptability, foresight, and commitment.
It might sound complicated and time-consuming, but it’s so worth the up-front investment. Purchasing wholesale and marking up products is essential to making a profit and growing your business. And once you get sourcing and procurement down to a science, you’ll be able to save tons of valuable time and stress, stay on track and on budget, while also delivering final results that thrill your clients, again and again.
