The evaluation and selection of suppliers carry utmost importance in the current scenario of global purchasing. It helps companies in structuring the supplier base and improving the efficiency of the supply chain. Especially organizations in the manufacturing sector need to have a supplier selection and evaluation model in place in order to gain the utmost value from their suppliers. However, evaluating suppliers can be challenging, costly, inefficient, and inconsistent task for companies. The approaches used by companies can prove to be inadequate and inefficient when it companies to supplier measurement. Through this blog, we have tried to highlight the relevance of the supplier evaluation process and best practices that can address challenges such as how to :
- Identify hidden cost drivers in the business.
- Figure out approaches and metrics for supplier evaluation.
- Determine actionable supplier opportunities for improvement.