Title: 7 things to consider when choosing the right outsource partner

Source:

https://www.fronetics.com/7-things-consider-choosing-right-outsource-partner/

Summary:

Finding the right outsource partner is critical to success. There are seven things you need to
consider in choosing a new outsource partner; first is Culture and Values, in choosing the right
supplier you have to consider the corporate culture as well. You need to look or examine their
vision and value statements. The right supplier should be capable in fitting with your team and
with your customer’s needs and desires. If you can’t find common ground here, it is unlikely you
will be able to build a positive working relationship. Second is Standards and Metrics, it’s
important to know the standards of quality and delivery or your possible supplier. It has to be
similar approach with the ones within your business. Third is Investments, similar investments
showing business culture or strategy alignment. If the investments are different, find out why.
Fourth, Financial stability, you don’t want to enter into a partnership only to find out in a few
months that the company is not financial stable.  Entering into a partnership with a company that
does not have its financial house in order is a costly mistake. Fifth, where will you stand? It is
essential to know where you stand inside your partner’s organizational priorities. If you are
comfortable with where you will stand, that’s great. If not, find another partner. Sixth, Long-term
strategy; It is also important to look at the long-term strategy of your company and your potential
partner’s company. The potential partner needs to be able to provide the specified service for the
foreseeable future and also needs to be able to grow with your company’s strategic needs. Lastly,
Credibility; You have to look at social media and find what other people says about your
possible supplier. Social media can help call attention to potential issues. Also talk with others
within the industry – especially people who have worked with the potential partner before. By
following these steps, you’ll be able to better evaluate potential partners and identify partners
that are a good fit from both a business and cultural perspective.

Title: 5 Steps to Successful Supplier Selection

Source: http://transformanceadvisors.com/portfolio-view/successful-supplier-selection/

Summary:

There are 5 steps you should take in order to make the correct decisions in supplier selection.
The first step in the supplier selection process is to create a supplier selection scorecard. Your
scorecard should be assessable and must include; supplier’s characteristics, strategic alignment
factors you value, applicable business policies and constraints. At this step, make sure you are
prioritizing your needs. Step two; Identify Suitable Suppliers. You must create the pool from
which you will select a supplier. The things you need to consider are; Current suppliers, past
suppliers, Competitors, Industry groups, Recommendations and prior business relationships and
the Internet. Next, gather information from the identified suitable suppliers. Tabulate the
information you collect and use the scorecard to rank the potential suppliers. In this step you
have to review your criteria and/or expand your search. Step four is Negotiation. Depending on
the critical good or service, you may negotiate with just the top supplier on your scorecard, even
if others remain on the list of potentials. Last step is to create contract and activate purchasing
system.

Title: Supplier Management: Six Steps to Selecting the Right Supplier

Source: http://www.foodsafetymagazine.com/magazine-archive1/augustseptember-
2012/supplier-management-six-steps-to-selecting-the-right-supplier/

Summary:

Selecting the right supplier may seem like a difficult process for your supply chain. Quality and
safety of our ingredients, products and packaging are dominant to our success, so choosing a
good supplier is a critical business decision. So these are six steps in finding the right supplier.
First is to identify your supplier. It is important to gather the views of stakeholders and define the
standards for the selection process. The supplier selection team should work with the potential
suppliers to establish specifications. Second, is to measure the supply performance, another
essential step of the supplier management process is developing an audit and assessment
program. You should always conduct an audit before the contract is signed to confirm that the
supplier does not have any significant compliance or quality system failures that could affect
your ability to produce top-quality products. Third, gaining supplier feedback, another tool you
can use with suppliers is a self-assessment questionnaire. The supplier self-assessment can be
used to identify performance gaps, as well as discover how the supplier understands their own
operation. You should discuss and select the appropriate metrics with suppliers to receive their
input and understanding of purposeful measurements. Fourth, achieving certification, as your
supplier relationship grows stronger, and both parties feel they are receiving positive
performances; the supplier may be able to achieve a certified status. As the relationship
continues to grow, the supplier also will become more integrated into your manufacturing
process. Fifth, is to develop partnerships, eventually, the manufacturer and supplier relationship
is at its best when a strategic partnership is formed, allowing full knowledge of the source of
materials and ensuring high quality. But, there are risks associated with forging this kind of
partnership. Trust in both parties becomes dominant, and both entities must ensure no potential
or real conflicts of interest occur. Last is to ensure quality for consumers, developing a supplier
quality management program can be a complex and upfront investment. However, once you
choose to build strong relationships with reliable suppliers, you will have peace of mind,
knowing you’re delivering high quality to your consumer.