What are the top 5 factors you consider when deciding to partner with a supplier?
1. Supplier quality history
3. Financial background to assess risk - What % of the supplier's business will you be contributing to (I would not want to be the single largest customer) and what % of your business will you give to the supplier (Again, would not want to depend on a single supplier)
4. Responsiveness in ensuring On Time In Full Supply
5. Innovation quotient
1.) Trust 2.) Value for Money 3.) Experience in the market 4.) Recognition of our company culture 5.) Flexibility
For me its about values. Not necessarily cultural fit as that is quite broad. Its about an alignment of values. Under this umbrella mutual support and benefits can be more sustainably aligned. Cost and quality are all about values. Often this is not understood, but managing through value alignment addresses the respective needs of both parties.
A) Supplier Quality of Products B) Competitive Price C) Supplier Authenticity and Current Customers D) Response D Flexibilty to Changes
1. Trust 2. Professionalism (ease of working, attitude) 3. Technical Ability 4. Experience 5. Value
You've already had some great comments. While you asked for 5, Frank Cavallaro wrote a great piece on 7 things to consider - while the post focuses on outsource partners, I think the considerations apply to suppliers as well. http://www.fronetics.com/7-things-consider-choosing-right-outsource-partner/
In no specific order:
- Service Quality: Can't get this by looking at an RFx response alone;
- Cultural Fit: In my mind this can also be interpreted as how much you trust them to deliver what you need and whether or not they will respond the way you need them to respond when issues arise;
- Total Cost of Ownership (TCO): can't look at price alone;
- Experience and references; and
- Process maturity and alignment (with your own).
1. Cultural fit, i.e. the ability to work well together, share information and avoid surprises. 2. The Opportunity for mutual value generation, 3. Aligned strategic direction, 4. Executive level buy-in to support the delivery of what you promise, 5. Executive level buy-in the support the delivery of what you promise!