How can supplier performance be measured when selecting a new supplier? Discuss the SCOR model followed by other suggestions for good relations.
What will be an ideal response?
It is vitally important to choose suppliers carefully as their failure will cause problems for a small business. When first selecting a supplier, a small business should address the following issues.
* How does the supplier compare to others on measures that are important to the business? The SCOR model centered around the following five attributes can be used for a start.
1. Reliability: Does the supplier provide what the company needs and fills orders accurately?
2. Responsiveness: Does the supplier deliver inputs when they are needed?
3. Flexibility: Does the supplier respond quickly to changes in the company's order?
4. Cost: Does the supplier help the company control the company's cost of goods sold, total supply chain management costs, and warranty/returns costs?
5. Asset Efficiency: Does the supplier help the company improve efficiencies by shortening the cash cycle, inventory holding time, and demand on assets?
* What services does the supplier offer? Do they extend credit, plan promotions or offer management advice?
* Maintaining the relationship is important so professional purchasing practices should be used such as paying bills promptly, listening to sales representatives, minimize abrupt cancellation of orders, avoid browbeating, cooperate and be courteous.
You might also like to view...
Soledad and Winston are partners who share income in the ratio of 1:3 and have capital balances of $100,000 and $140,000 at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $130,000 . What amount of loss on realization should be allocated to Winston?
a. $110,000 b. $97,500 c. $42,500 d. $82,500
Asset maintenance involves only the recording of depreciation charges. Physical improvements are always expensed
Indicate whether the statement is true or false
Choose the correct word or words in parentheses. (To, Too, Two) of the most important factors in success are preparation and hard work
The terms "bilateral" and "unilateral" as applied to contracts are based on:
A) What the offeror must do to accept the offer. B) The number of attempts made to form a contract. C) The number of parties in a contract. D) The number of attempts it took for a contract to be successfully performed. E) What the offeree must do to accept the offer.