Deutsch-Chinesischer-Kulturaustausch. Malen. Einkauf-Verkauf-Management

Supplier Evaluation

It is not sufficiant, to use as main categories the turn over,
ignoring, that e.g. small non-expensive components can endanger the whole company.
If they are deliverable only by monopolists. Means: the influence and risk in case of non-supply is most important.

The safety plug is more important in your houshold, than a lot of lamps.

Quality of components:
I learnt, that even traders were categorized by component quality. Such may be right, for certain mass ware. But:

E.g. trade ware can mean, similar products from separate traders.
So, the quality of product is mainly linked to the producer, not the trader.

Some example for categories how I recommend for e.g. companies who are not a fabricator or massware producer: :

Partnership/reliability, Importance for us,
   Pricebehaviour,
         Quality in performance / in products.
               Country ( law, risk etc. )

A very simple ordering can be done by just

A for important / quasi monopol
B with alternatives on the market / oligopol
C standard componets and service, easy to get. Polipol Market.

Depending on buyers view there are possibilities to evaluate per Criteria.

For me most important is not turnover, some times a mistake or delay,
but:

how important is that supplier for us?
Monopolist for us?
Or important, because of other criteria e.g. same company group, or client?
A supplier with small turnover with us, - but with a unique product / service.
How does he help, with market information, in regard to new ideas, in case of
problems.

Some evaluation models also can be more detailed - especially where there are mass products,
hundreds of suppliers, and too many people involved in decision making,

Other example:

PERFORMANCE evaluation of supplier:
( with a certain minimum quantity of deliveries per year to enable an interpretation )
Just some highlights as samples:

What is important for us as client ?
That supplier meets the contract,
...to the agreed DATE / TIME ( delivery dates )
...with agreed QUANTITY
...in sufficient QUALITY
...under consideration of further criteria as: Health, environment

How he handled the order:
ORDER-PROCESSING
- Reaction time
- Friendly problem solving

LOGISTICS
- Packing, Marking, sufficient transport

DOCUMENTATION
-Quantity
-Content
-Instructions, certificates, after-sales info as spare part list

CLAIMS
-How did he communicate,
-solved problems,
-how long was his reaction time .. etc. etc.

SUPPLY
Reliability in meeting agreed dates:
Comparisation of “contractual date for performance”
– with date for real fulfillment of delivery of =
1. components / goods handed over )
2. documents / certificates handed over.
The difference in dates could be linked to penalty clauses to calculate penalty,
- as indication for the purchaser, to decide, how to handle this matter.
Either to deduct, or to use as arguments in next negotiation.

The deviation ( fulfillment date with agreed date ) can be statistically presented in percentage of total deliveries, where there need to be a certain number as min. 20 – 30 deliveries,
to be able, to see a trend.

Delivery quantity
Deviations from agreed quantity respective partial deliveries, instead of the contractually agreed 1 delivery.
Deviations to measure for min. 20 deliveries, to enable trend interpretation.

Evaluation is a wide field, with hundreds of criteria. Every situation is different.
More details can be presented in a training, offered by me.