Business Challenge: Issues with finding rights suppliers for prime raw material categories
A leading chemicals manufacturer was facing issues with identification and qualification of right suppliers for its prime raw material categories. They were not following a systematic approach for supplier identification, evaluation and shortlisting.
Situation: The client wanted to implement an early warning system that could help them foresee potential supplier specific risks
They faced challenges with ranking of the identified suppliers based on capabilities and selecting the best among the suppliers that qualified their product and quality criteria. The category managers were clear with the qualities that they were looking in a supplier, but were not sure of the industry best practices followed in supplier selection.
Approach: Deployed a systematic approach for identification and selection of the best possible suppliers
We took a systematic approach that involved finalization of qualification criteria, development of a long list of potential suppliers, and shortlisting of the identified suppliers based on capabilities. We consulted with the client’s category managers to understand the ideal qualities that they were looking for in a supplier and did a sort assessment of the key parameters considered by best-in-class peer group companies. Based on these criteria, we shortlisted the best suppliers from a long list of qualified suppliers. Further, we conducted a deep-dive assessment of the shortlisted suppliers to develop recommendations for the client on the suppliers.
Impact: Client was able to gain deep understanding of the supplier landscape and best practices followed in supplier selection
The client gained detailed insights on the supplier landscape and the key parameters to consider for selection of the best suppliers. They also gained detailed understanding of the best practices followed by the peer-group companies. Based on our recommendations, they were able to partner with the right suppliers in a long-term perspective.