The Need for a new supplier, Sources of information & who is a good supplier? A detailed study is needed for getting the answers. Next is how to evaluate a supplier ? A supplier visit & Audit is required to understand them better.
What are their capabilities, Regular Products, Customers, Financial status, Spare capacity, Technical Strength, QC standards, Manpower in Production, QC dept, Production facilities, Equipments, Testing & material handling equipments, Stores activities, Employee Relations, Any Management System certification like ISO 9000 or Social Audits like SA 8000 / California Prop 65 / BSCI etc.
Once Registered, do periodic supplier evaluation taking into consideration their materials / Service quality / Promptness of Delivery / Chances of getting the orders based on Pricing. Do the rating of the supplier based on above parameter. Promote good suppliers & get rid of bad performers.
