How to Look for Suppliers: Simple Guide on Supplier Assessment

Overview

A basic overview of how we conduct supplier assessment including the factors we consider before having them as part of our sourcing operations, which is a necessary process to screen suppliers and make sure we are both on the same page in terms of quality service.

Article Highlights

  • Pricing is a factor in hiring a supplier but focusing exclusively on this aspect is wrong.
  • We weigh the services of potential suppliers based on quality, technology and tools they use.
  • The supplier you will hire needs to be reputable in and around the industry.

While we do feasibility study reports for our clients to determine whether the project they are trying to invest on is most likely to succeed; our services are not just limited to it, as we are more than willing to cater to them beyond feasibility studies such as conducting supplier assessment. In this article, we will focus on a vital process known as supplier assessment procedure.

When manufacturing/production companies are bound to operate, they need to have suppliers who will provide them the materials they need to sell products to their possible customers. These suppliers are not hard to find since there are a lot of them in this industry. The only problem is you must execute the supplier assessment procedure properly, so you’d be able to tap suppliers which will be assets to your company and not become liabilities.

Most companies settle for the cheapest available supplier without weighing on other options revolving around the supplier selection process. It’s completely understandable pricing is a major factor in supplier assessment but focusing exclusively on this aspect is wrong because other factors get overlooked in the supplier assessment process. Here is our simple guide on how we do supplier assessment for our clients.

supplier assessment introduction supplier assessment - intrepid sourcing

Supplier Selection Criteria

  1. Value for Money

This criterion is basic in our supplier assessment process. Instead of looking at cheap pricing, we weigh the services potential suppliers can provide based on quality, technology, and tools suppliers use to render services as part of supplier evaluation. By doing so, we are assured our clients get the most out of what they are paying for in their suppliers. At the same time, we stick to the budget set for suppliers and not go beyond to stick to the cost estimation process done beforehand.

  1. Service Quality

Supplier assessment determines service quality. The quality of your supplier’s services should be attributed towards their consistency in delivering the goods. They need to be on time according to the schedule both parties have agreed to. There is never a reason to be late in the world of business and it is a fact. The supplier assessment process verifies this part very well.

  1. Reliability

Always keep in mind if suppliers are not reliable then this could right away reflect on to your company for being unreliable to your customers as well. For example, if you go to the department store to purchase something but is currently out of stock, you would not blame the supplier directly for such mishap but be pissed off at the store for the moment. Reliability is a major concern in our supplier assessment process.

  1. Open Communication Lines

Suppliers need to be honest in case things go awry on their end. They must tell you if they will be late or if they are out of stocks so at least your company can prepare for a viable solution to your possible customers. You must think of your supplier as a tag-team to whatever it is you are doing and not simply another company working on your behalf. Honesty and open communication lines are must-haves in our supplier assessment procedure.

  1. Credible Reputation

Supplier assessment also checks if a potential supplier is reputable in and around the industry you are in. They should have past and present clients who can speak positively on their behalf. Their good reputation should automatically say they have the characteristics you want from a supplier and this is a big plus for supplier assessment. Other factors to notify credible reputation in our supplier performance evaluation should be the track record, certifications, financial stability, media references and brand marketing. These factors can be added as notes in the supplier assessment report.

The criteria listed above are what we look for in our supplier assessment process. There may be minor additions along the way but the four items mentioned are the main focus of our supplier assessment method.

This article belongs to our
Introductory
Series


–  Analyzing Cost Estimation in Manufacturing/Production
–  Effective Lead Time Analysis: How to Reduce Lead Time?
–  Providing Viability of Solutions Thru Feasibility Study
–  How to Look for Suppliers: Simple Guide on Supplier Assessment
–  Overview of Sourcing and Procurement in an Integrated Supply Chain
–  How Due Diligence Process Protects Our Company
–  The Art of Prototyping in OEM Companies –  A Simple Guide on Contract Negotiating Process
–  Production Line Measures
–  Establishing a Product Costing System
–  Do's and Dont's of Product Packaging in China
–  Quality Control Plan in the Industry of Manufacturing
–  Pragmatic View on Intermediary Services
–  What is Logistics Management?
–  Extensive Analysis on Demand Planning and Forecasting