Selection of Supplier How to Evaluate

                                                     Supplier Selection Theory!!! 

Let 's Discuss today - How to Select a Supplier !! 

Supplier Selection is really Critical Task . Some Supplier might be Best fit & Some might have some have hidden deficiencies. Another supplier might be more expensive with few addon valve and other might be cheaper without that. 

The Supplier Selection begins as soon as there is an identified need for something what organization choose not to make itself or cannot make Itself. 

                                   How we generally Find a potential supplier - 

Sources of suppliers search are Online Exchange and auction, today Google is best to search anything. Trade magazines , Trade shows , Direct marketing , word of mouth from salesperson. We can also review our current supplier . I found Google & Trade shows are Important Tool these days.. 

                                 Now you have a List of 10 Potential supplier!!!!!

Let 's Evaluate  Now :: 

Three Major Heads -  COST , VALUE & RISK 

Cost - There are three major Cost criteria  Price of Product , Transportation Cost & Inventory Carrying Cost . These all head will lead you toward Product Landing cost 

Value - These are competitive factors. Capacity of Vendor , Reliability, Flexibility ,Agility ,Technical Capability,& Quality. on these factors you can compare between your Ten potential supplier. 

Risk - This category is risks. Risks are Availability ,Lead time and Price change. We need to go in detail for these risk factors. 

Availability relates to risk - Can Supplier Promise it Capacity (Check with other buyers) 

Lead Time - It relates to variation in Early or Late deliveries.

Price Change - Is there any chance that supplier increase price with in a given period of time of contract ? 

There might be some other criteria also 

- Financial Stability 

- Innovative Process

-Commitment to Sustainability

I am attaching one of Template  which You can use in Evaluation of your supplier

I hope this Template will help in comparing different supplier!!! 

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