Wednesday, 1 April 2015

Selecting the Right Suppliers

Authored by  Junaid Khan 


There are many factors involves in selection of right suppliers in relevant tenders, and most of the organization count it as challenging task. But selection of suppliers can be a smooth process if you have proper supplier pre-qualification criteria as per policies of organization. 

The facts and figures shows that right supplier selection process is key to success for buyer and supplier relationship and without pre-qualification event it not possible for any procurement professional to invite relevant vendor in tenders. But first of all identification of new vendor from market is very important. During identification of supplier it is very important to collect opinions of internal stakeholders with in organisations who can also help in defining supplier selection criteria. During identification of supplier, you should always pay attention on following points.

  • Service quality
  • Delivery commitments
  • Reliable delivery methods
  • Resource Savings
  • Financial stability & credit strength
  • Proven performance and experience

Low price is not always a best achievement. If you want reliability and quality from your suppliers, you'll have to decide how much you're willing to pay for your supplies and the balance you want to strike between cost, reliability, quality and service. Once you get clear idea of need requirements then you can build a shortlisted vendors directory. After this step you can call potential suppliers for their pre-qualification and once quality suppliers are pre-qualified with your organization, you can move them onto negotiating terms and conditions to finalize contract.