Our latest quarterly newsletter Feature Article discussed strategic supplier selection. Due to the response we’ve had, we wanted to follow-up on our blog.
We were surprised to discover many of our newsletter subscribers didn’t know a variety of options existed for gaining additional assurances when going through the supplier selection process.
Determining which option you leverage involves the level of risk you’re willing to take in the process.
What are the options?
The most basic information that you will want to have verified by an external source includes legal verification. Is the supplier legally able to partner and produce products for you? It becomes less clear how to do that when you’re looking at potential suppliers abroad. Using a 3rd party with local access is often preferred due to the cost and time required to execute internally.
Another indicator of performance is generally an organization’s credit rating.