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Supplier evaluation and selection entails assessment, identification, and approval of potential suppliers through vigorous evaluation procedures. It involves collection of information about potential suppliers, for example, their financial stability, past and current performance records, and future business development plans.
Evaluation of Suppliers
As the chief purchasing officer (CPO) of the company, I would look at the supplier’s ability to meet and exceed the expectations of the company and the customers. The performance track record of the supplier should be excellent. The supplier should recognize its responsibility to deliver high quality goods and services at low costs and competitive prices without losing its capability and ability to meet current and future capacity requirements of our organization.
The supplier should have high compliance record with governing laws and regulations, and approved competence, for instance, it must have international certifications such as ISO 9001 and QS-9000. According to Nelson, Moody and Stegner, the supplier should fully comprehend the goals and objectives of the organization and avoid any conflicts of interests (Nelson, Moody & Stegner, 2005).
Its delivery schedules should be reliable, convenient, and flexible enough to meet the demand of the company that may change from time to time. As the CPO, I will evaluate suppliers on the basis of their capability to provide technical support to the organization whenever necessary.
Furthermore, the supplier should be engaged in ethical business practices, must show environmental and social accountability, have high performance competence, non-bureaucratic organizational structure, promising growth potential, and passion for business development and innovations. Additionally, it should be financially stable and have effective plans to ensure its business continuity.
Selection of Suppliers
The best supplier will be selected based on its ability to meet the criteria set by the organization. First and foremost, any supplier must be evaluated and then compared with other suppliers to assess its competence and ability to meet the requirements of the organization.
The selection process also entails critical and strategic thinking over the potential supplier’s aptitude and proficiency in service delivery. Only those suppliers whose trading licenses are valid and their certifications have been confirmed by the selection panel can be selected.
As the CPO, I will establish certain performance indicators that all suppliers will be scrutinized against. Additionally, a team of professional procurement officers, quality professionals and production engineers will assess samples of materials or goods to be supplied. They will also come up with an Approved Suppliers List (ASL) for grading and easy identification of suitable suppliers.