What Are the Best Tips for Vendor Selection?

In a narrow sense, selecting a supplier refers to the process of selecting one or more suppliers after a company has studied all proposals and offers. The selection of suppliers in a broad sense includes the continuous cycle of a company from determining demand to finalizing suppliers and evaluating suppliers.

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According to corporate research

In the process of globalization,

There are many problems in the evaluation of Chinese companies when selecting suppliers: When companies choose suppliers, there are too many subjective components, and sometimes they often determine the choice of suppliers based on their impressions. There are also some personal components in the selection of suppliers; Supplier selection criteria are not comprehensive. Most of the company's selection criteria focus on the supplier's product quality, price, flexibility, delivery on time, lead time and batch size. There is no comprehensive supplier evaluation index system. Make a comprehensive, specific and objective evaluation of suppliers. The broad supplier selection process includes the following steps:

1. Analyze the market competition environment. The purpose of this step is to find out which product markets to develop supply chain partnerships to be effective. You must know what product requirements are, what types and characteristics of products are in order to confirm user needs, and thus the necessity of supplier evaluation and selection. At the same time, analyze the current status of existing suppliers, analyze and summarize the existing problems of the enterprise.

2. Establish supplier selection goals. The company must determine how the supplier evaluation process is implemented, how the information process is performed, and who is responsible, and it must establish substantive and practical goals. Among them, reducing costs is one of the main goals. Supplier evaluation and selection is not just a simple evaluation and selection process. It is also a business process restructuring process between the company itself and the company and the company. Can bring a series of benefits.

3. Establish supplier evaluation standards. The indicator system for comprehensive supplier evaluation is the basis and standard for enterprises to comprehensively evaluate suppliers. It is an indicator that reflects the different attributes of a complex system formed by the enterprise itself and the environment. It is an organized collection of membership relationships and hierarchical structure. In accordance with the principles of comprehensiveness, conciseness, stability, comparability, and flexibility, a comprehensive evaluation index system for suppliers in an integrated supply chain management environment is established. Different industries, enterprises, product needs, and supplier evaluations in different environments should be different. But it should involve supplier performance, equipment management, human resource development, quality control, cost control, technology development, customer satisfaction, delivery agreement and other aspects.

4. Establish an evaluation team. The company must establish a team to control and implement supplier evaluations. The evaluation team must be supported by the top leadership of both the manufacturer and supplier companies.

5. Supplier participation. Once a company decides to implement a supplier evaluation, the evaluation team must get in touch with the initially selected suppliers to confirm whether they are willing to establish a cooperative relationship with the company and whether they have the desire to achieve a higher level of performance. Companies should involve suppliers in the design of evaluations as early as possible. However, because the power and resources of the company are limited, the company can only maintain close cooperation with a small number of key suppliers, so there should not be too many participating suppliers.

6. Evaluate suppliers. One of the main tasks of evaluating suppliers is to investigate and collect all aspects of the supplier's production operations. On the basis of collecting supplier information, we can use certain tools and technical methods for supplier evaluation. After the evaluation process, there is a decision point to select suppliers based on a certain technical method. If the selection is successful, the cooperation relationship can be started. If there is no suitable supplier to choose from, return to step 2 to restart the evaluation selection.

7. Implement cooperative relationships. In the process of implementing the cooperative relationship, the market demand will continue to change, and the supplier evaluation standards can be modified in a timely manner according to the needs of the actual situation, or the supplier evaluation selection can be restarted. When re-selecting a supplier, the old supplier should be given sufficient time to adapt to the change.