THE BASIS OF RELIABLE SUPPLIER ASSOCIATIONS

– Zsuzsanna Kohl's presentation at SUPER 2020 Road Show

Regardless of what type of company we run, suppliers have a key role in the success of that. If we establish a reliable system that can also track and evaluate the performance of our suppliers, than we have taken the most important step so that our company can operate as smoothly and the most productive way as it is possible - was lectured by Zsuzsanna Kohl, managing director of FrameWork Hungary Ltd. at the Preparation For Successful EU Applications 2020 Program Series at the country's major cities during the recent weeks. Those who missed the event can read our article on what it was about.

Publisher: Origo.hu, Piac&Profit

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Evaluating suppliers is not an easy process. Several technic and formulae useable, their selection and weighting point of views depend on the type of business. In order to perform a proper win-win relationship with our suppliers, sub-contractors the prior task should be setting-up the value system. Those point of views are get on by a new potential supplier and a long since live supplier connection too.

1. Establishment of criteria
In which category we rate our partners naturally depends on type of business and company, product, the frequency and type of collaboration /co-operation. We can make questionaires in which ask employees about their experiences connected with suppliers, we can continuously monitoring our suppliers in frame of audits. Naturally the company’s own processes and needs are define primarily the applicable criteria. Check some of them:

Competence: Put an assessment  through  concerning the skills of suppliers in the needs of our company. It is rewarding to consider other customer’s opinion are commanding with relevant experience.

Capacity: A supplier must command with capacity on every account that covers our needs, we should get know that all resources are given that need to achieve our goals.

Commitment: For long-term collaboration we must make sure on every account that they committed enough to perform a valuable partnership: if they have standard ISO 9001 system.

Monitoring: Qualitative criteria must be defined, assess the undertakings and rules of internal controls concerning to  their realization, which are guarantee that the possible most immaculate would be that they provide.

Financial background: It is a must that our expectant suppliers would command with stable financial background and we should consider that they could prove continuous financial stability.

Expenses: Let’s check it how much is the fee, comparing prices with other similar candidates. To consider the price- value rate is essential.

Continuance: Make sure of how can our expectant partner warrant the flowing high- level service if a key man will drop out the project, the usual level will be maintained?

Company Culture: How important is the conception of quality in the operation of company? How they abide by deadlines? Consider those aspects too!

Clarity, transparency: Prominently important that our expectant partner would be legally clear, we must make sure, so will not worth unpleasant surprise during the cooperation.

Communication: By evaluating criteria have an important rule the communication of our expectant supplier, quickness of reactions, efficiency and style.

2. Collecting information, managing data:
After the performance and compositions of criteria system we must get all –these confirmed- information and record them in writing  so that data would be retrieval whenever. If we once set up the evaluation criteria we should decide who will responsible for the inquiry of data in the company. For instance we can commission  the financial director, or anyone from financial department that the acquisition department together with the representative of operational or engineering department get this task done.

3. Compliance review
The review of our potential and already existent supplier can happen by audits. If our target is exploring opportunities to sign a contract,  possibly compare more potential carrier before contracting then we should get an audit done before signing the contract. If we would like to set out in what extent and how was introduced the management system-required by company-  and how efficient were they applied , we should hold an audit related to the contract. The aim of the audit after contracting may be the revision related to contract, controlling and completion of experiences during the process.

General experience that suppliers are operating in the market for longer time are more reliable, because they likely to provide prime products, services and have certainty clientele and enough orders.

4. Maintain good relations
The  compliance of accepted supplier must reviewed on occasion of fulfilments periodically, as well as lengthen a contract. If we are not satisfied we can catch up contribution with them, but in strategic aspect still better to keep them, caution them and give an opportunity to correct the problem. However we are satisfied with them show it and give them more commissions. The successful large companies are honour their suppliers, handle them as a business  partner. Communicate them often and opened manner, although technology is a great thing do not ignore keep in contact in person and its advantages, like  a phone talking or a face-to-face negotiation. Avoid conflicts, be direct and transparent, make them sure of they understand our needs and requirements.

If we make accurate job we can find those partners, who are mostly appropriate for cooperation and successful working. In turn a well-chosen supplier greatly endorse success of our business, increase and assist customer satisfaction.
If we talk about conversely profitable partnership about our suppliers, its positive affect is sensible on our revenues, position of negotiations, and also on the quality of our services.

 

 
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