As you know, the main supplier of our components announced suddenly last month that they were closing down shortly, leaving us in a very difficult situation. I shortlisted four potential replacement suppliers, and have visited them all. I'll report on each, though I've only found one company that meets our needs entirely.Initially, I was optimistic about the first company I saw. I was given an enthusiastic welcome and generous hospitality by the MD, but when he took me on a tour of the factory, I began to have a few doubts about his commercial expertise. The factory is enormous, a converted aircraft shed, I think, almost too big to be practical. There is certainly enough machinery to produce the quantities we need, and that, of course, is vital.However, I had one main concern. The company has recently invested heavily in state-of- the-art production equipment and in a comprehensive training programme for machine operators. But I was surprised to see that half the factory wasn't in use because several important customers had cancelled orders. I was reassured that orders are dispatched quickly, and delivery times are impressive, and distribution isn't a problem, but I'd need to inspect their products more closely to see if the quality's what we require.The second company looked promising too, because they are based in the region that produces the natural resources to make our components. Everything needed for their activities is available on their doorstep. They have a good working relationship with the local mine owners, who are known to have good safety records. During my visit, the company went into great detail about the quality inspections carried out on the material before it leaves the mines.This company seemed to have no problems with transport, until I looked more closely. The factory is in a very mountainous region, about 600 kilometres from the capital city. Passenger flights are fairly frequent, taking under two hours, but the journey by road can take days. The roads are really inadequate. The whole infrastructure needs massive investment. There is a seaport just over the border with the neighbouring country, which would certainly cut down on distance, but, as far as I can see, it might also bring other problems. Now we simply can't risk depending on such fragile communications.The third company I looked at, on the other hand, is on the coast, with good access to the main seaport. Transport and shipping of goods are well organised and, in fact, they own a haulage company as one of their subsidiaries. The production unit is new, built and equipped with the help of investment from the Ministry of Industry. What's more, company workers are involved in decision-making, and industrial relations are excellent. Perfect so far.Unfortunately, though, their finished products are not of the quality we demand. The specifications are right for our components, so no modifications in design would be necessary. But when I did a quick inspection, I found a higher percentage of faults than we'd be prepared to tolerate. If we chose them, we'd certainly have to negotiate longer warranties than those they're offering at present.The final company I visited seems to have everything, though. It's ten years old, well established, located between the capital and a major seaport. The company has grown rapidly and has just modernised its factory, thanks to a loan from the World Bank, which has enabled it to install the most up-to-date equipment available on the market. The production unit is now fully automated, and efficiency is the company's great strength.This company has a well-deserved reputation for the quality of its finished goods. Given their high standard, it's not surprising that the costs are considerable, and they're asking higher prices than the other companies I visited. But I'm confident we'll be able to negotiate on this. The key point in their favour, in my opinion, is their ability to meet deadlines for the duration of a long-term contract. It's easy to meet one deadline, of course, the difficult thing is to do it all the time.To sum up, then.

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