Selecting a supplier can be an arduous choice for any business. The right choice can lead to a strong and mutually beneficial relationship and ease of business for your organisation, while the wrong choice can waste time, money and effort.
That’s why it’s crucial to invest time in determining whether a potential supplier can meet your procurement needs and whether the supplier would be a good fit for your business.
Dr Ray Carter, the author of ‘Practical Procurement” and “Practical Procurement Management”, identified 10 C’s of Supplier Evaluation, which can aid any organisation in making an educated supplier decision. These criterions can help you evaluate potential suppliers in the areas that matter to you and can improve your supply chain management.
The 10 C’s, explained:
How competent is the supplier? Do they have the capabilities needed to fulfil your needs?
Does the supplier have enough capacity to handle your company’s requirements? Will they be able to respond to your needs on time?
Has the supplier provided evidence that they are committed to high-quality standards and your service as a customer?
How much control does the supplier have over the processes, procedures, policies and supply chain? How do they ensure that they deliver consistent and reliable service?
Is your supplier in good financial health and can they weather economic ups and downs?
How expensive are the products and services being supplied to you? How does it compare to other suppliers?
Does this supplier take steps to ensure that they consistently provide high-quality goods or services?
How is the business culture of the supplier organisation? Does it align with your company values and does it enable you to establish a healthy and productive business relationship.
Does the supplier adhere to good practices when it comes to sustainability and business ethics?
How does the supplier manage communication? Do their proposed communication approaches align with your business needs and preferred communication methods? How does the supplier manage communication in the event of a crisis?
These 10 C’s will enable you to thoroughly assess and evaluate prospective suppliers and ascertain whether they will be a good fit for your organisation. Building a positive and healthy business relationship is especially critical for players in the manufacturing industry, where deadlines are tight, demand can fluctuate and competition is fierce.
Plastic & Chemical Trading is a valuable technical partner that supports your manufacturing needs. Contact us today to ask how we can streamline and improve your business!