SUPPLY Flashcards
EXAM (10 cards)
refers to the process of
choosing the best supplier for the needs of a business.
Supplier selection
ensures the potential supplier
meets the technical, financial, and commercial criteria the business needs
Supplier evaluation
It is an essential part of
the supply chain process wherein the aim is to choose the best supplier that offers value for money and can deliver the requirements of the business efficiently and effectively.
Supplier selection process
is the process of assessing
and approving the potential suppliers of a business. It can take the form of a questionnaire, interview, or site visit with the suppliers to determine if they can meet the requirements of an organization.
Supplier evaluation
involves maintaining and administering the relationship between a buyer (business) and the supplier.
Supplier relationship management
It means frequent communication between the organization and the supplier to address issues
quickly and to keep each other updated on sudden changes in operations.
Establish clear communication channels.
Trust is built through open dialogue around expectations, objectives, and goals so that both sides know what is expected
from them.
Develop trust
When suppliers show sustained excellence in performing their duties, following set metrics, they should be rewarded for that performance.
Reward performance.
it is a benefit of an effective business relationship, where the business and supplier can open a discussion to adjust the cost of goods, such as a discount if there is a bulk ordering of raw materials needed, or a
lower price.
Price reduction
The supplier may share innovative developments or new market offerings they are using or know of so that the partner business can adapt if those technologies apply to them.
Technology or innovation exchanges
