Critical Success Factors Affecting Supplier Selection

826 Words Oct 4th, 2015 4 Pages
Analysis of critical success factors affecting supplier selection
1. Cost: The main reason to identify cost related criteria such as operation cost, purchasing cost, transportation cost and taxes. Cost is major factor for selecting supplier. The factor that affect this criteria are:
1.1 Price company always cheaper price to increase the profit for company. So company therefore must find a low cost supply base.
1.2 Distribution cost includes distribution channel cost, inventory cost, packaging cost, insurance cost.
2. Technological ability:
Supplier should have technological capacity to provide high quality products and service. For the global market place technological criteria is essential. Information systems include SAP systems and other factor also important for better communication through that systems. With better technology for plant to increase the capacity of production which taken place into account when we decide the best supplier.
3. Quality: Quality is major factor when we choose supplier. Suppler should improve quality and give better performance. This factor measure by following criteria: product development of supplier, planning for quality, assurance in quality, quality assessment and quality inspection.
4. Organizational profile: Factor has been identify by following measures; sales and marketing goals, financial performance, organizational strategy.
5. Services: supplier provides services are the main criteria for select the particular product. It…
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