There are 6 main criteria to check when evaluating a supplier :
a) Quality Certifications
b) Business Requirements
c) R&D Resources
d) Competitiveness
e) Quality Level in Mass Production
f) Production
We recommend that you fix 3 levels for every criteria : Preferred, Acceptable, Unacceptable.
In some cases you can define the frequency of measurement for the criteria : weekly, monthly...
Quality Certifications
This defines the minimum quality certification level required to be in your Supplier Panel.
For example:
- ISO/TS 16949 plus environmental certification ISO 14001 or EMAS
- AS 9100 plus environmental certification ISO 14001 or EMAS
- ISO 9001 plus environmental certification ISO 14001 or EMAS
- ISO/TS 16949
- AS 9100
- ISO 9001
- Supplier Quality Evaluation Score (following the Supplier Audit Form )
Business Requirements
This defines the list of business conditions required to be in your Supplier Panel. (following the Supplier Profile)
For example:
- Financial Risk (Low, Medium, High)
- Supplier Turnover
- Ratio of net debt /net worth
- Net Margin
- Ratio of financial expenses / Turnover
- Ratio of added value / personnel expenses
- Company's Business dependence (the ratio of supplier turnover with your company/ supplier turnover)
- Activity's Suppliers dependence (supplier specialized in a single activity: telecom)
R&D Resources (only for expert and designer suppliers)
- Total R&D Budget / Total Supplier's budget
- R&D Workforce / Total Supplier's Workforce
Competitiveness
- Number of Technical Suggestions
- Supplier Cost Performance (actual cost / target cost)
- Number of suggestions / number of references.
- Amount of savings made.
- Workforce dedicated to Value Analysis / Total Supplier's workforce
- Supplier cost evolution (purchasing price year-1 / actual purchasing price )
Quality Level in Mass Production
- Rotation of stocks of Finished Products (days)
- Number of purchasing orders with quality problems over total purchasing orders for this supplier. (< X%)
- Number of purchasing lines orders with quality problems over total purchasing line orders for this supplier. (< X%)
- Number of items delivered with quality problems over total items delivered for this supplier. (< X%)
Production
- Production geographical location (how far the supplier's production sites are from your production site)
- Production workload
Buyer Portal is a Software for Industrial Buyers.
Buyer Portal can help you to manage your Suppliers using an adequate Supplier ID Card.
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