Supplier selection for many companies, especially SMEs, is not a planned situation; it is only addressed when the need arises. In this situation, the lack of planning practically guarantees that the supplier selection process will incur the typical mistakes that will end in difficulties throughout the duration of the contractual relationship or, in the worst case, in the definitive termination of the supplier-customer relationship.
For a company, having difficulties with suppliers means a delay in the project, annoyance with customers, and non-performance of their work. Suppliers are an essential part of a project; without them, you can not move forward, but making a wrong selection also leads us to the same case.
Here are some mistakes that can be made when choosing a supplier:
1. Not defining 100% of the needs: Although it is logical to understand the supplier selection process, there is often a lack of definition of needs due to a lack of time or not dedicating the right time to it. Before contacting a supplier, a plan should be drawn up with all the materials and needs required to execute a project to avoid wasting time, low product quality standards, or unnecessary loss of materials.
2. Select only by price: Cost is an essential factor, but it should not become the only one to be considered or the most important. The need to save a little more often leads to repercussions in the delivery of the work. The quality of the supplier will be the quality of the material delivered and, therefore, the quality of the product to be delivered. It is not only selecting suppliers based on their cost; we must consider the quality of the materials and the time they have in the market, among others.
3. Not having a selection strategy: Not establishing standards for suppliers will make their selection difficult and impossible to evaluate. To confirm these parameters, a strategy must be drawn up. To achieve this, you must define the profile of the right supplier, with the parameters to be met and the tolerance ranges the company is willing to grant.
Selecting a supplier is vital for your company and project; maintain standards for the selection and define the selection process!
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