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Top 5 Tips for Successfully Assessing Your Vendors & Suppliers!

Top 5 Tips for Successfully Assessing Your Vendors & Suppliers!

These tips can help organisations apply industry demonstrated results for evaluating and further developing vendors and suppliers execution to drive your organizations productivity, quality control and profitability. 

Having a formalized methodology set up to follow and assess vendors and suppliers quality is crucial for the benefit of the quality control of your operations and your organization’s success. 

Here are 5 tips you’ll need to effectively rate your vendors and suppliers, track their performance, and ultimately increase your company’s overall productivity and value.

Vendors 
Suppliers 
5 tips for Assessing 
KPIs 
Ranking System 
Evaluation Technique 
Implement & Analyse The Evalution Technique 
Communication

The 5 Tips! 

#1 Establish Benchmarks &  KPIs

Organizations need to plainly characterize benchmarks and key performance indicators (KPIs) to precisely pass judgment on the suppliers and vendors production. By fostering key deliverables that express the quality, quantity, and operation specificities; organizations can productively screen the execution of output quality control for each vendor. Benchmarks can be set up daily, weekly etc and also depending on the importance of the product (raw materials etc) to guarantee production quality meets the specific demand. 

#2 Allocate Ranking System 

Organizations that involve a third party supplier or vendor ought to have a ranking system of their top quality performers and standard performers. Nonetheless, organizations can’t rank all vendors with the same criteria as not all vendors and suppliers will provide the same service. 

Consequently, organizations should rank providers by gathering them into levels indicated by their service and value. This way the levels of the ranking system mirrors the value added and important elements to each company, gaining a better idea of who is vital to their operations. 

#3 Devise an Evaluation Technique

Every company has their own technique of evaluating vendors, from surveys to software-generated analyses. However, management must customize their evaluation method to their company and vendors to ensure accurate results.

Each organization has their own procedure of assessing vendors, yet in any case, the management should alter their evaluation technique to their organization and vendors to guarantee precise outcomes. Based on information gathered to create KPIs and the ranking system put in place, an evaluation technique can be devised in order to track performance of each vendor and supplier.

#4 Implement & Analyse the Evaluation Technique 

Once organisations find an evaluation technique that works best for them, they would need to progress to an implementation process and then an analysing process. 

  1. Implement Process 
  • Using the evaluation technique devised, organisations are required to create a plan and implement this plan in order to assess the effectiveness of the evaluation technique 
  1. Analysing Process 
  • Once the evaluation technique has been implemented, oraganizations can then check the effectiveness of this methodology. 

This creates an opportunity for organizations to maximise their effectiveness and to regularly have an overview of the progress of the evaluation technique when it comes to assessing vendors and suppliers. This process helps with checking if this evaluation technique needs to be revised or implemented in another manner. An extra plus for these processes is that with the right software application this methodology could be digitised in real time automatically and produce results as regularly as required to optimise overall effectiveness efficiently. 

#5 Communication is KEY! 

In all organisations, the most important aspect of business is communication. Without communication, productivity levels and profitability can suffer. In order to diffuse any issues amongst organisations and vendors, there would need to be consistent and regular communication. This is not only external communication in regards to reports and analysis of processes, but also the internal management teams communications especially when it comes to detailed reporting for internal analysis before contact with external parties. 

How Tekmon Can Help: 

The real question is how can all this be easier for organisations to do, this is where Tekmon can help. All information regarding KPIs, benchmarks and evaluation techniques can be digitised as digital forms instead of paper forms, decreasing paper wastage and human discrepancies. 

When it comes to Implementing & Analysing the Evaluation Technique and Communication amongst internal and external parties, Tekmon’s software application can help you keep track of reporting and the effectiveness of the evaluation technique on a regular basis with automatic reports created based on the data found. 

Tekmon’s software can also be used to create structured reports or forms of data, which can sync with BI tools in order to analyse reports and extra data in real time, this aids with analysis of data so KPIs can be automatically formed. This easy access to information to create detailed reports in less time, resulting in higher productivity of an organisation. 

In terms of communication, once automatic reports are formed, they can be requested as often as required with tailored data which can be sent to managers to instigate communication with internal or external parties regarding relevant report analysis. This automation promotes constant communication, therefore decreasing the chances of issues due to miscommunication, increasing the efficiency of an organisation alongside productivity and value. 

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