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What are the best tools and techniques for ensuring supplier reliability?

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Supplier reliability is crucial for any business that depends on external partners to deliver quality products or services on time and within budget. However, finding and managing reliable suppliers can be challenging, especially in a dynamic and competitive market. In this article, we will explore some of the best tools and techniques for ensuring supplier reliability, from sourcing and screening to monitoring and evaluation.

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Deepak Thiru CPSS?

ISM-CPSS? Certified |End-to-End Sourcing & Procurement Operations | Vendor Management |
Keshav Pal

Solving D2C | NSIT'21

1 Sourcing tools

One of the first steps to ensure supplier reliability is to find potential suppliers that meet your criteria and expectations. Sourcing tools can help you identify, compare, and contact suppliers from various sources, such as online platforms, databases, directories, trade shows, or referrals. Some examples of sourcing tools are Alibaba, ThomasNet, Global Sources, and MFG. These tools can help you narrow down your search based on factors such as location, industry, certification, capacity, and reputation.

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Mohamed Radwan

Strategic Sourcing & Procurement Lead Engineer at Al Gihaz Holding | Expert in Market Intelligence & Risk Management | Driving Efficiency in Construction & EPC Projects | MBA Graduate | Advancing Supply Chain Excellence
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We need to make sure that supplier relationship management practices are efficient to build strong and collaborative relationships with your suppliers, and this will involve regular communication, performance evaluation, conducting regular supplier audits, and ensuring supplier adherence to quality standards. We can also use SRM software to track performance and invest in tools that provide end-to-end visibility into the supply chain. Use risk management tools to assess and mitigate potential risks associated with suppliers, and most importantly, establish clear contractual agreements with suppliers, including service level agreements (SLAs) that outline expectations and consequences for non-compliance.

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Keshav Pal

Solving D2C | NSIT'21
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As a part of strategic sourcing, it's the top most priority of a sourcing manager to Efficiency and effectively use the sourcing tools. Prior knowledge of industry always helps in shortlisting and connecting to right supplier. Sourcing manager must ensure to apply filter like verified suppliers, Factory production capacity, Annual revenue, existing customers etc. all these can be easily identified in alibaba and other tools. Always check for business license and other regulatary norms certificate as per requirement.

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2 Screening techniques

Once you have a list of potential suppliers, you need to screen them to verify their credentials and capabilities. Screening techniques can help you assess the quality, performance, and compliance of suppliers based on various criteria, such as references, reviews, audits, samples, or tests. Some examples of screening techniques are supplier questionnaires, site visits, ISO certification checks, and third-party inspections. These techniques can help you eliminate unqualified or unreliable suppliers and select the best ones for your business.

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Keshav Pal

Solving D2C | NSIT'21
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In my experience of sourcing, shortlisting the supplier on criteria of reviews, online audits and test even if they present business document is not enough, supplier may provide you with fake credentials and reports. It is extremely important to get a physical inspection either by you or by any third party agency.

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3 Contracting tools

After you have chosen your preferred suppliers, you need to formalize your relationship and expectations with them. Contracting tools can help you create, negotiate, and manage contracts with suppliers that specify the terms and conditions of your partnership, such as scope, deliverables, payment, deadlines, and penalties. Some examples of contracting tools are DocuSign, ContractWorks, PandaDoc, and ContractRoom. These tools can help you streamline the contracting process, avoid disputes, and protect your interests.

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4 Monitoring tools

Once you have signed a contract with a supplier, you need to monitor their performance and progress regularly. Monitoring tools can help you track, measure, and report on the status and quality of the supplier's deliverables, such as orders, shipments, invoices, or issues. Some examples of monitoring tools are Zoho Inventory, ShipStation, QuickBooks, and Zendesk. These tools can help you detect and resolve any problems or delays with the supplier, as well as optimize your inventory and cash flow.

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5 Evaluation techniques

At the end of a contract or project with a supplier, you need to evaluate their overall performance and satisfaction. Evaluation techniques can help you collect, analyze, and act on feedback from both the supplier and your internal stakeholders, such as customers, employees, or managers. Some examples of evaluation techniques are supplier scorecards, surveys, interviews, and reviews. These techniques can help you identify the strengths and weaknesses of the supplier, as well as areas for improvement or recognition.

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6 Continuous improvement tools

Finally, you need to continuously improve your supplier relationship and reliability over time. Continuous improvement tools can help you implement and manage best practices, standards, and processes for supplier sourcing and management, such as lean, six sigma, or kaizen. Some examples of continuous improvement tools are SmartSheet, Process Street, Trello, and Asana. These tools can help you plan, execute, and monitor your improvement initiatives, as well as collaborate and communicate with your suppliers and internal teams.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Deepak Thiru CPSS?

ISM-CPSS? Certified |End-to-End Sourcing & Procurement Operations | Vendor Management |
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Supplier reliability is having Consistent, timely, and quality supply with open communication. Ensure supplier reliability with audits, scorecards, and SRM software. Enforce QMS and standards, foster collaboration and manage risks. Define expectations in contracts, consider dual sourcing, and maintain open communication. Regular monitoring and improvement efforts are vital for an efficient and resilient supply chain.

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What are the best tools and techniques for ensuring supplier reliability?

1

2

3

4

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1 Sourcing tools

2 Screening techniques

3 Contracting tools

4 Monitoring tools

5 Evaluation techniques

6 Continuous improvement tools

7 Here’s what else to consider

Supplier Sourcing

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What are the best tools and techniques for ensuring supplier reliability?

1

2

3

4

5

6

7

1 Sourcing tools

2 Screening techniques

3 Contracting tools

4 Monitoring tools

5 Evaluation techniques

6 Continuous improvement tools

7 Here’s what else to consider

Supplier Sourcing

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