7.3 THE STRATEGIST IN YOU: Evaluating Potential Suppliers

THE STRATEGIST IN YOU

(SHORT NOTES FROM STRATEGY TOOLS:

Sourcing and Purchasing Strategy at http://www.mindtools.com)

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Mismatches between needs and a supplier's offerings can add costs, cause delays, and even damage the organization's reputation.  Ray Carter, director of DPSS Consultants outlined "The 10 Cs of Supplier Evaluation".

The 10 Cs
1	Competency	look at how competent this supplier is Make a thorough assessment of the supplier's capabilities measured against your needs also look at what other customers think Look for customers whose needs and values are similar to yours, to ensure that the information you gather is relevant to your organization.
2	Capacity	supplier needs to have enough capacity to handle firm's requirements how quickly will it respond to these, and to other market and the supply fluctuations Look at all of the supplier's resources
3	Commitment	supplier needs to provide evidence that it's committed to high quality standards look for quality initiatives within the organization, such as ISO 9001 and Six Sigma supplier needs to show that it is committed for the duration of the time
4	Control	Query how much control supplier has over its policies, processes, procedures, and supply chain Assurance of consistent delivery and reliability
5	Cash	supplier is in good financial health
6	Cost	Look at the cost of the product the supplier provides compare with the other firms that you're considering
7	Consistency	ensure supplier consistently provides high quality goods or services supplier should have processes or procedures in place to ensure consistency
8	Culture	based business relationships on closely matching workplace values important to look at the supplier's business culture
9	Clean	look at supplier's commitment to sustainability, and its adherence to environmental laws and best practices Ask to see evidence of any green accolades or credentials Look at how supplier treat its people and the people around it and does it have a reputation for doing business ethically
10	Communication	Query how the supplier plans to keep in touch with you its proposed communication approaches contact person at this firm find out how the supplier will handle communications in the event of a crisis