How can you assess supplier strengths and weaknesses?

Processo "due diligence" dos fornecedores e parceiros é uma prática proativa que ajuda evitar problemas através da análise se os fornecedores atendem aos requisitos principais e necessários para que uma organiza??o possa atender seus clientes com qualidade, funcionalidade e nos prazos. Ajuda a reduzir riscos associados ao fornecimento de produtos e/ou servi?os. Alguns itens de análise : Qualidade do Produto ou Servi?o, Conformidade Regulatória, Estabilidade Financeira,Práticas éticas e Responsabilidade Social, Seguran?a da Informa??o,etc

- You must evaluate suppliers based on performance metrics such as product /service quality, on-time delivery, prices , and their responsiveness time and corrective actions to issues. - There are other things to take in consideration while assessing your supplier : - Supplier's understanding of your industry and their ability to adapt to market changes. - Financial risks : Assess their financial stability and ability to meet your long-term needs. - The strength of your relationship as the supplier is your success partner.

Supplier evaluation is a critical aspect of supplier relationship management. It is a must to conduct evaluations with long-term agreed suppliers or those with significant repetitive engagements, as well as any ad-hoc suppliers with substantial monetary value. The supplier evaluation process can be organized through the implementation of SWOT analysis, defined KPI's (eg. price, customer service, sales/ support after service, innovation, capability, quality, lead time, financial flexibility,,,), site visits, due diligence & risk mitigation. Open communication is a crucial element to maintain an effective relationship.

In my supply chain management journey, I've learned choosing suppliers goes beyond cost to building a resilient, ethical network. AI tools provide deep insights into supplier performance, emphasizing the importance of effective communication, sustainability, and ethical practices. Financial stability, adaptability, quality assurance, continuous innovation, and cultural synergy are crucial. Integrating SKUPREME has been transformative, enabling detailed interaction records, streamlined approvals, and enhanced decision-making with real-time analytics. It supports risk management, scalability, and aligns suppliers with our values, making it vital in shaping our ethical business framework.

Na minha experiência ao longo de mais de 20 anos lidando com a cadeia de abastecimento, afirmo com certeza que n?o existe uma única melhor forma de avaliar os pontos fortes e fracos de fornecedores. Lidamos diariamente com inúmeros produtos, servi?os, moedas, economias, culturas...importante que o comprador esteja atento a todo esse cenário. N?o é possível avaliar isoladamente o fornecedor sem se preocupar com toda intrínseca teia de conex?es que ajudam a definir suas fortalezas e fraquezas. Sugiro entender e conhecer estrutura organizacional, acionistas, políticas internas, política do país em que se encontra, planejamento estratégico, etc.

Sempre importante ver com qual perfil de fornecedor e cliente a empresa se relaciona, isso diz muito sobre suas características.

I’ve used the strategy of creating several scenarios where the company might be. Then through their analysis and answers if a great way to understand which are their capabilities and how can they be deployed on our needs.

Conhecer a capacidade de atendimento e produ??o, a habilidade de se adaptar aos diversos cenários e atender aos requisitos do cliente é de suma importancia para se formar uma carteira de fornecedores e parceiros.

Ask them a series of strategic questions to catch them out . Usual producción time ? Workers ? Output per worker ? How they plan to reach ur delivery time, etc? Penalties ? Etc etc

When evaluating the capabilities of suppliers in the Chinese market: 1. Assess production capacity and quality control through site visits or audits to ensure they meet demand with consistent quality. 2. Evaluate technological advancement and innovation, crucial for efficient and up-to-date production. 3. Examine logistics and responsiveness to ensure timely delivery and adaptability to changes. 4. Gather external insights through surveys, interviews, and references to validate their performance and reliability. Understanding these aspects will help gauge their ability to fulfill your business needs effectively.

Comparar precios es un ejercicio altamente necesario y aunque suene obvio, debe medirse en un contexto. También es un gran indicador de como el proveedor se comporta con este factor en pos de negociarlo, mirarlo en el largo plazo, extenderlo en situaciones de crisis...es decir un pivote de comportamiento.

Correr atrás de pre?o baixo é definitivamente útil para a margem de lucro / fluxo de caixa, mas pode prejudicar a qualidade do produto / servi?o. Sempre fazemos uma correla??o entre pre?o alto e produtos melhores ou pre?o mais baixo e produtos inferiores, mas isso nem sempre funciona.

Avoid chasing the lowest price in supplier hunting! That penny saved today might cost you a dollar tomorrow in lost quality or delays. Bargaining down to the last cent isn't just tedious; it can backfire, leading to a cascade of customer complaints and headaches. Instead, aim for a fair price but keep a keen eye on quality and reliability. Remember, paying a bit more often buys peace of mind and happy customers, and isn't that worth every penny?

I may add one thing regarding comparison of pricing. Chasing for low price is definitely helpful for profit margin / cash flow but it may hamper quality of product / service. We often try to make a correlation between higher price & better products or lower price & lower products, which might not works always. Rather, if we can offer a better cost + mark-up rate for vendors who passes products/ service criteria level that works better i think as raw material price / method of product processing is same for all always.

as advised previously the quoted price can show many positive or negative issues, for example if the quotation is too high or it is too lower than the market common rates.

Acredito que a análise de desempenho inicia-se desde o convite à participa??o do processo de concorrência para sele??o deste fornecedor. A maneira que ele respondeu as solicita??es de propostas, esclarecimentos até a negocia??o e efetiva??o da contrata??o já nos apresenta elementos a respeito do fornecimento ou presta??o do servi?o.

It's important to evaluate the proposed Service Levels, Reachability & Turn around Time though testing. Negotiate an initial period for testing the capabilities in real time scenarios before finalising the transition to a new supplier and the continue to monitor the performance periodically.

When analyzing Chinese suppliers with metrics like KPIs, scorecards, and dashboards, it's vital to remember these tools don't encompass everything. They might miss qualitative nuances crucial in the Chinese context, such as communication styles, cultural fit, or innovative capacity. Balancing these quantitative assessments with a deeper understanding of the supplier's overall business culture and ethos is key, especially given the unique business practices and market dynamics in China.

In my opinion performance evaluation is to be done for sure . In service industry it is being practiced everywhere . Making a SOP with proper performance indicators like timeline, score , reviews is a must and there should a handholding approach with supplier to give their best for every job assigned to them. Many times it is observed that you have performed in over hundred of consignment with punctuality is becoming questionable if you fail to deliver as per expected task once or twice. There comes the responsibility of principals to understand the problem associated with the failure part and a handholding is needed in certain situations. However a reluctant and repeatedly failed approach to be taken seriously for service provider.

Establecer y realizar un seguimiento de los KPI para proveedores es un enfoque proactivo y estratégico para gestionar las relaciones con los proveedores. Contribuye a la mejora del desempe?o, la mitigación de riesgos y la eficiencia general de la cadena de suministro, asegurando que los proveedores estén alineados con los objetivos de la organización y entreguen valor de manera consistente.

Before you dive deep with a Chinese supplier, always start with stock samples to gauge quality. If they're up to snuff, request customized samples to match your specifications. Golden samples are super important and lab testing and quality checks crucial. It's a step-by-step journey to ensure you get exactly what you need.

Different samples can be requested to see the product quality, test results and all necessary documents can be requested free of charge.

the test phase, is done firstly by the buyer in their facilities or outsourcing the needed services and secondly the customers' feedback which is the most important and shows if they will start or continue the the purchase or not.

De plus, le co?t d'une pièce achetée au prix le plus bas mais avec un dédouanement important, un co?t de transport élevée et une production aléatoire pourra mettre le budget du produit fini en péril s'il n'y a pas de possibilité de modification ou de SAV réactif, d'où la nécessité de ne pas forcément prendre le premier prix vendu à l'autre bout du monde, mais un fournisseur local qui pourra nous permettre de tester le produit afin de l'adapter au mieux au produit fini.

Construir relaciones sólidas con proveedores chinos requiere realismo, paciencia, y adaptabilidad: Realismo en Pedidos: No exageres tus pedidos; pedir demasiado y luego reducir la cantidad puede afectar la calidad si encima le pides el mismo precio. Paciencia: Los proveedores chinos pueden ser reservados inicialmente con la información que le solicitamos. Conexión Personal y Profesional: Mezclar lo laboral con lo personal puede fortalecer la confianza. Compartir aspectos de tu vida personal puede ser beneficioso. Anticipación a Problemas: Establece metas y fechas claras. La supervisión constante ayuda a evitar sorpresas. Flexibilidad en Comunicación: Email solo lo importante. Usa WhatsApp o WeChat para comunicarte más eficazmente.

Embora representamos CNPJ(s), fazemos negócios com outras pessoas ("PF"). Por isso a importancia de se estabelecer e manter relacionamentos a longo prazo, pois você conseguirá minimizar riscos ao conhecer o perfil e forma de atuar de seus parceiros.

In my experinece, beside 4P (competitive Price, high quality Product, Reasonable Promotion, and wide distribution) every supplier need to make firm relationship based on trust and honesty with clients and middleman in market , also strong partner and b2b should not be forgotten! Loyalty, being in touch every time and have a good knowledge about products can make long term relationship with clients.

I’ve used Simon Sinek’s endless game theory as great way to start discussions with the suppliers that build into a good relationship. This proves to them that is crucial to understand where both us are at any given time and the aim. Where in any case should be to grow together, then any issues that might arrive are easier to see earlier. Also we can create a joint strategy that delivers on many fronts; such as cost cutting, capabilities, etc.

El construir lazos, permite establecer un vínculo más allá de lo contractual, que arroja la actitud de una contraparte como persona, pues en situaciones límites o de crisis, siempre se apelará al criterio como ser humano.

Examining the work history of the supplier, the contracts he has had, consultation with the customers for whom he has supplied goods. Reliable documentation. Physical observation of the facilities and capabilities of the supplier.

One thing i may add about vendor payment system. Delayed / poor payment system is bad than faster payment. Faster & transparent payment method always brings better outcome

Ter um bom relacionamento com o fornecedor n?o é o suficiente, temos que levar em conta alguns pontos como certifica??es, a qualidade dos materiais, índice de devolu??o, entre outros… Afinal para o nosso cliente nós somos fornecedores e quanto temos que estar em dia, para atender as necessidades do nosso cliente? Essa análise se reverte também quando estamos na condi??o de fornecedores.

As a company or customer, I should identify our requirements and goals then we can consider some supplier's name according to the needs specified earlier.. then we should prepare a checklist showing the main aspects considered as a basis of success.. after that we should share it with the top 5-3 suppliers that being considered, based on the results will get will determine the best supplier that can deliver best results.. on the other hand, I prefer to determine suppliers by ares of needs .. as sometimes we required to deal with multiple suppliers to achieve operational needs in the best way we targeting.