How Do Indirect Suppliers Impact Cost

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How do indirect suppliers impact cost?

1 •

How competitive is the indirect supplier’s cost?2 •

3•How do their products or services affect quality, such as, for example,
?service quality

The products offered by the factory are considered part of the products provided by the factory. If
the quality of the products is poor, it will negatively affect the products provided by the factory,
.and vice versa

How good is the supplier’s customer service?4 •

How quickly does the supplier resolve service problems?5 •

In the first six months, the supplier was very quick to solve problems, and in the last six months of
.the year, the supplier began to be lazy and not pay attention to solving these problems

6• How does the supplier impact the timeliness of the customer company’s
?ability to provide service to its customers

In the first six months, the supplier was delivering the products on time without any delay, so the
factory was able to deliver the products to the customers on time. In recent months, the supplier
started not caring about the delivery time, which led to delays in the delivery of the customers of
.the products they requested

7•Some indirect suppliers provide technology-based services or use technology to give them a
competitive edge. How does their technology give competitive advantage to your company?

8• Does the supplier demonstrate continuous improvement to resolve issues, reduce costs, and
improve performance?
Yes, he was showing improvement and progress for the first six months and then started to ignore
any improvement in the last six months.

9• What is the relative importance or weight of the KPIs?


It is of great importance because it determines the continuity of suppliers or leaving them and the
commitment of suppliers to provide everything that the company requires

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