Supplier Selection Criteria

 Identifying a Supplier:

It is important to identify suppliers and compare their capabilities and prices.

Required specifications like the quality of the product, packaging, price of the product and quantity, etc.

There should be open and transparent communication between the suppliers and the organization.

The important factor in selecting the right supplier is the value.

Certain other criteria to select the suppliers are:

  • Customer service
  • Delivery commitments
  • Reliability
  • Responsiveness
  • Resource saving
  • Contingency planning

Measuring Supply Performance:

Before selecting the supplier, the supplier’s site or warehouse audit should be conducted to ensure the warehouse is maintained up to the standard requirements and confirm they produce quality products and also their compliance towards the safety standards. This audit will be beneficial to understand the strengths and weakness of the suppliers.

Parameters to be adhered by the suppliers are:

Shelf life of the products should be below the limits like

  • Minimum 6 months expiry for Dry and Frozen products and
  • Fresh products expiry date should have minimum 3 days.

Delivery vehicle should be clean and temperature controlled depending on the type of food items being delivered.

Dry products – (+18*C to +22*C)

Frozen products – (-18*C to -22*C)

Fresh/ Chilled products – (0*C to +5*C)

Ware house storage should be of industrial specifications and adhering to legal requirements.

Even after the supplier has been selected and approved, periodical audits to assess each supplier’s performance should be conducted.

Achieve Certification:

Certificates like Successful performance of the supplies, adhering to legal laws etc should be obtained. These make a pathway for the better process of supplies. This certification also proves that the supplier is certified and the goods supplied are as per the standard requirements.

Developing Partnership

With strong relationships the supplier anticipates the organizational requirements and the standards to be maintained which will curtail the delays in the service, quality issues, etc. This type of partnership allows for an increased understanding and mutual benefits for both parties

 

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