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Evaluating Suppliers And Build Productive Relationship

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TOPIC 1 - ASSESS SUPPLIERS AND BUILD PRODUCTIVE RELATIONSHIP
CRITERIA TO ENABLE AN EFFECTIVE EVALUATION OF SUPPLIER SERVICES ARE DEVELOPED AND DOCUMENTED
Supplier evaluation scorecards are used by many industries and are critical to an organisation’s success, but there is no specific way to create a scorecard. Based on the available research and the document analysis, quality, delivery, total cost and service are the main criteria that should be part of the scorecard.

Industry reviews show that in service is becoming a critical evaluation aspect to differentiate suppliers. The criteria should be well-defined, and not subjective to how the user or evaluator interprets it. For the purpose of consistency among buyers in an organisation, subjectivity needs to be minimum. Supplier evaluations should rate the performance of all suppliers equally; therefore it is important the criteria be measured objectively. Following are some recommendations for developing assessment criteria: • Find out short-term and long-term goals of the supply management
• Look at suppliers and their products that need evaluation
• Create a proposal that determines time, resources and scope of the project
• Have management create a cross-functional team (Suppliers should be included at this stage for maximum results)
• Define the priority criteria (Include the core criteria: Quality, Delivery, Total Cost and Services)
• Determine the weight of each criteria, based on the goals of the company (Make
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