Rating and Evaluating Your Suppliers and Vendors

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//Suppliers plays a very important role in the success of any organization. It is necessary for every business to carefully identify and analyze various suppliers available in the market. The following section highlights the various criteria that can be used by the organization for evaluating the suppliers and vendors//

Introduction

After identifying the number of suppliers, the organization should select the most suitable and reliable suppliers of the market. The selection of appropriate supplier ensures the continuous flow of production in the organization (Gordon, 2008). In addition to this, it is necessary that every organization should take effective measures to maintain healthy and strong relation with the suppliers. Also, the suppliers help the organization in satisfying the needs and demands of the customers in the best possible manner.

Criteria for Rating and Evaluation of Suppliers and Vendors

There are several criteria for rating and evaluation of suppliers. Some of the most important criteria are:

Maintaining good and healthy relationship: It is necessary that every organization should maintain a healthy relationship with the suppliers. Suppliers should be considered as the most important part of the organization (Brown, 2014). All the necessary information should be communicated to the supplier on the timely basis. Moreover, the organization should arrange several meetings with the suppliers and discuss various problems faced by them.

Classify multiple suppliers and vendors: It is necessary that the organization classifies various suppliers that are available in the market (Brown, 2014). The organization should be very careful while classifying the suppliers as the wrong classification can hamper the entire production of the organization.

Establish performance indicators: Moreover, the organization should adopt various performance indicators in order to measure the performance of the suppliers. The performance indicator proves to be very beneficial in distinguishing between the most effective and least effective suppliers (Brown, 2014). In addition to ...