When manufacturing and production companies are bound to operate, they need to have suppliers who will provide them the materials they need to sell products to their potential customers. These suppliers are not hard to find since there are a lot of them in this industry. The only problem is you must assess them 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 hiring a supplier but focusing exclusively on this aspect is wrong because other factors get overlooked in the process. Here is our simple guide on how we do supplier assessment for our clients.
Supplier Selection Criteria
Value for Money
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. 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.
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 on to. There is never a reason to be late in the world of business and it is a fact.
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.
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 in your behalf.
The supplier you are going to hire needs to be 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. Other factors to notify credible reputation should be track record, certifications, financial stability, media references and brand marketing.
Sourcing from another country requires a standardized supplier performance evaluation method. Our supplier assessment selects the best suppliers to remove potential sourcing problems. Considering your individual product needs, this minimizes your workload and separates good factories from bad ones.
What Do You Have to Consider for Supplier Assessment?
Most product manufacturing 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 hiring a supplier but focusing exclusively on this aspect is wrong because other factors get overlooked in the process.
We set up objective supplier selection criteria that make sure all suppliers meet your expectations. As a result, our supplier assessment method ranks suppliers based on quality, price and service. Moreover, company characteristics (like production capacity, research capabilities and relevant product certifications) are also used. In the end, our supplier performance scorecard matches the right supplier for the product your target market wants.
- For Your Ideal Manufacturing Solution: We help you choose the supplier that satisfies your business needs with our supplier assessment. Our supplier evaluation method gives you options to choose so you aren’t stuck with one supplier.
- Based on All Factors that Matter: Our supplier assessment ranks suppliers according to factors like quality of service. This is so you can find out which supplier matches your needs. In the end, you lower your overall risk.
- Long Experience: Prices from suppliers are analyzed. They are ranked and compared based on the likelihood of them being true. We have standardized supplier selection criteria from our years of experience.
Performing A Supplier Assessment
Why it Matters
You can’t take a supplier’s word for it when it comes to quality. A good supplier evaluation procedure can distinguish between a great supplier and one that flatters. Your supplier assessment should make a shortlist of suppliers you can work with. Moreover, a supplier evaluation procedure should add extra security with more detailed information about how the product is made.
We believe any supplier performance evaluation should focus on three main parts: administration, price and quality. First, our supplier assessment reviews a company’s admin. We review all documents from the supplier to analyze their management. Secondly, our supplier performance evaluation looks at product pricing. Suppliers often give different prices for the same item so we review them based on other quotations. Our supplier assessment compares direct and indirect costs as well. Thirdly, we review the company’s certifications. Local registration, testing agency certifications and product specific certifications are part of the supplier evaluation procedure. Check out this other article on supplier assessment and how it impacts the production line.
Want to Combine Services?
When sourcing abroad, you want a smooth experience from start to finish. Cutting out any potential problems at the source and decreasing your workload at every step is the motivation behind the supplier assessment. With that in mind, the importance of appropriate and rigorous supplier risk assessment is obvious.
Each project requires customized attention. You can choose standard packages or go for a personal-driven solution. Make the best combination for your success and we will deliver it to you with great care!
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