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Showing posts from December, 2008

Evaluating Supplier

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To evaluate suppliers, we need to understand the importance of supplier for smooth functioning of the organisation. We purchase from suppliers because our organization simply needs our suppliers’ products and services in order to operate in the manner desired and achieve certain results. A supplier that performs well can help our organization be more efficient, produce higher quality products or services, reduce costs, and increase profits. A supplier that performs poorly can disrupt our operations, make our organization fail in the eyes of our customers, increase our costs, and threaten our profits. It is utmost important to evaluate two type of supplier viz., High Volume Supplier and High Impact Supplier; as these kind of suppliers' role will have direct impact to the PL of the organisation. High Volume Suppliers are those kind of suppliers whose supply is bulk in nature and also the transaction amounts to major percentage of the procurement. These suppliers are to be e