Choosing the right supplier for your business needs is very important to ensure that you can deliver products and services on time at the right price and meet your quality standards. By implementing specific supplier selection criteria, it is possible to find a company willing to cooperate with you to meet customer needs.
Here are five tips to help you find the right raw material suppliers or other companies to purchase.
Comparative pricing
1. Set your standards.
Create a list of supplier selection criteria that the company needs to meet in order to provide you with the products you need. This may include the following questions:
Delivery time from receipt of order to delivery.
Minimum and maximum order quantity
Storage and handling facilities
Specific delivery method
Quality assurance process
Terms and conditions of payment
Return policy
Contactable reference
Setting standards in advance will enable you to evaluate the potential suppliers of each listed project and ensure that you will not ignore any important requirements.
2. Define your process.
Determine the method you will use to find the right supplier. Decide whether you will publish your requirements in trade publications and invite tenders, or whether you will directly contact the selected company for advice and valuation. Assign a time frame to the supplier selection process. Appoint qualified members of your team to review the proposal and recommend a short list of suppliers to choose from.
3. Bidding.
According to the selection process you choose, issue the tender notice. This may be a request for proposal (RFP) or a request for quotation (RFQ). Either way, it should include all the details of the products or services you need, as well as the quantity, delivery date and quality standards determined in your standards. Bidders are requested to provide detailed information about the process they use, the stability of their raw material suppliers (if applicable), and the reasons why you should choose them.
4. Evaluate the bidding documents.
Compare each submission you receive with the supplier's standard list and ask questions about any items that seem unclear. The American Quality Association suggested that measures should be taken to ensure the validity of the submitted materials. Review the scope of services outlined in the proposal and consider whether they meet your requirements. Determine the importance of each standard, and score all submitted contents accordingly, so as to obtain an objective evaluation method. Determine the term of the agreement or contract with each potential supplier to ensure that you will not fall into a situation harmful to your business.
5. Monitor the performance of suppliers.
Even the most reliable suppliers make mistakes occasionally. Make sure they have a direct contact point in your company and conduct regular performance evaluation. This will help you pay close attention to their work and ensure that they fulfill their obligations in the agreement. These comments will also help you talk about the contract renewal and let you know your position.
Following these tips will enable you to successfully select suppliers who can support your business needs by delivering the appropriate goods and services you need on time and within the budget. This will help you improve your productivity and ensure that you produce high-quality products/services.