For Managing the relationships and performance of the suppliers, below are some

Question

For Managing the relationships and performance of the suppliers, below are some examples of the supplier management. Please expand more about each point.

- Supplier audits for ensuring that supplier is doing right approaches for quality production.

- Supplier capacity assessments so that people can ensure that supplier is capable for business needs or not.

- Supplier financial position helps in assessment of longer survival probability of the business.

- Assessment of supplier’s growth path and success rate to ensure that how long the supplier will be able to support the organization.

Explanation / Answer

Supplier audits for ensuring that supplier is doing right approaches for quality production:

An organization must do audit for all the transactions related to last year of supply. Even, quality assessment should be done so that better quality raw material or goods will be obtained by the supplier end.

Supplier capacity assessments so that people can ensure that supplier are capable for business needs or not:

If, a particular supplier was not provided the pre- agreed articles or goods more than 3-4 times then it must be assigned negative rating. In this case, new people will be given chance to supply the products.

Supplier financial position helps in assessment of longer survival probability of the business:

An organization must check whether the financial position of the supplier is strong or not. It has direct relation with continuous supply of inputs. Many times, they delay product supply due to their insignificant financial viability.

Assessment of supplier’s growth path and success rate to ensure that how long the supplier will be able to support the organization:

A growing supplier organization will be better choice to give the task to supply raw material/inputs or any other product or services. They will have a better response rate as well as zeal to excel into business. It will also support long term viability of the project.

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