lean manufacturing

E.O.W (End of Week) Notable Tip: Key Performance Factors for effective Supplier Selection

Happy Friday! Hope you all had an amazing week!

Today, I want to discuss the 12 most important factors you should consider when choosing a supplier. These are important because they ensure supplier selection success and help you realize quality opportunities. Without further ado, please read below for the top 12 factors to consider when choosing a supplier, and as always, remember, “Success is continuous improvement.”

  • Type of product (new tech vs mature product)
  • Quality
  • Quality Assurance (certifications, audit processes)
  • Flexibility
  • Reliability
  • Location
  • Price
  • Delivery Capability
  • Lead times
  • Financial stability
  • Length of time in business
  • Relationship strength
  • *Of course, you can always add to the list based on your business requirements*

Simple Procurement Hacks to realize Savings

To elaborate further on previous article,  “Price focused Sourcing is bad for Business”, I have created a list of procurement hacks for realizing savings. saving-clipart-yTkeraBAc

1) Audit invoices and purchase orders to identify unapproved vendor charges, price discrepancies, and unapproved purchases.

2) Audit vendor database to ensure accurate data, remove duplicate information and ensure vendor has proper approval.

3) Share sales demand and budget data with procurement team.

4) Share inventory data with suppliers and have them do the same.

5) Develop a quality plan.

6) Focus on total cost instead of price.

7) Build strong supplier relationships by working with vendors to improve quality, delivery and logistics; and encourage the use on long-term contracts with quality stipulations and year by year locked in prices.

Are your procurement expenses deteriorating your bottom line? Could your sourcing process use a re-design? Contact me now http://bit.ly/2prHowW

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