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Measuring Purchasing Performance to Optimize Supply Chains

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The process of selecting a qualified supplier can be tedious and demanding, on the other hand, it can pay off if a few steps are followed to the latter. This process is not the same for all organizations as different organizations have different requirements and needs. However, the following information can be used as a checklist to ensure all parts of the process are looked into so that they do not cause problems in the future. The first issue to look at is the supplier’ s status. Here a variety of factors are considered such as the employees, the geographical location of the supplier as in where are they located and how easy can they be located.

Another factor to consider is the credibility of the supplier and this can be got from information about the supplier’ s reputation in the market. You could check white papers, the supplier’ s involvement in industry bodies, the supplier’ s competitors, etc. Still, on suppliers' credibility, you could talk to reference clients whom they have worked with before, the relationship with partners, the strategic direction of the company and the existing relationship between you and the supplier.

There could be an existing relationship based on previous business and this could be a stepping stone to aid you in the process (Fan, et al. , 2010). The second factor to be considered is the delivery capability of the supplier. This can be looked at in terms of the services they offer. Are they able to offer a wide range of services for the company including technical, support and delivery? Another issue to look at is the quality of deliverable: are they able to produce evidence of quality products and do these products meet their standards?

The third issue to look at its resources. Examine if the supplier has enough resources to sustain the production of the goods that the company requires. The third factor to consider is the supplier’ s culture. Several issues can be looked at here and these include professionalism, openness/ friendliness in as in how honest they are when faced with a problem, how discreet are they about clients and how do they communicate with clients. Another issue is integrity as in do they stand by what they supply?

Are they consistent and are they happy to be audited? They could also be looked at how proactive they are as if they offer solutions to problems, and lastly, do they understand your company’ s needs and the business environment in which the company operates?   The fourth factor is the financial/commercial status of the organization. There are various items that can be examined here.

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