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Choosing suppliers

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Topic: suppy chain management --- choosing suppliers

Please explain --- in detail --- the following:

* What are the useful criteria/considerations one would apply/consider when choosing among suppliers? When allocating capacity among suppliers?
* Are domestic and offshore suppliers always a substitute for each other? Are they sometimes complements? When would you use ONLY DOMESTIC outsourcing providers versus situations where you will use ONLY OFFSHORE providers?
* What is the logic for the hybrid use of domestic+offshore outsourcing?

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Choosing suppliers

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What are the useful criteria/considerations one would apply/consider when choosing among suppliers? When allocating capacity among suppliers?

Some of the useful criteria/considerations in chosing among suppliers are:

1) Background and History: It is extremely important to enquire about the previous history, reputation and background of the supplier in terms of his relationships with other companies as well as quality of products supplied to other companies. In other words, background check is an important evaluation criteria before finalizing a supplier.

2) Capacity related considerations: It is extremely important to ascertain the capacity of the supplier in terms of meeting regular demand of the company as well as demand during peak seasons in order to maintain a smooth and reliable source of supply.

3) Quality related considerations: Quality management is an inherent part of today's customer focused ...

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