Knowledgebase

Selecting and Assessing Suppliers Print

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Who you depend on.

WHAT TO ESTABLISH BEFORE ENGAGING ANY SUPPLIER

That they exist and operate as claimed Their capacity Their reliability Their financial stability Their quality Their terms

WHY FINANCIAL STABILITY

A supplier that fails stops your operation.

HOW TO ASSESS IT

Payment behaviour with their own suppliers Length of operation Willingness to provide information Reputation in the trade

WHAT TO VERIFY

Their registration and their premises.

WHY PREMISES

Trading companies presenting as manufacturers is common.

WHAT TO ESTABLISH

Whether they make it or buy it.

WHY

It determines lead time, control and where problems originate.

WHAT TO REQUEST

References from current customers Samples Evidence of capacity

WHAT TO ASSESS

Quality, against your requirement Consistency, across samples and over time

WHY CONSISTENCY SEPARATELY

Single samples are selected.

WHAT TO ESTABLISH ABOUT CAPACITY

Whether they can supply your volume alongside existing commitments.

WHY

Suppliers accept orders beyond their capacity.

WHAT TO ASK

Who else they supply and what proportion you would represent.

WHY

Being a small customer means low priority when capacity is constrained.

WHAT TO ESTABLISH

Whether alternatives exist.

WHY BEFORE COMMITTING

A sole source with no alternative is a serious exposure.

WHAT TO DOCUMENT

The assessment.


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