FACTOR IN SELECTING SUPPLIER
· Technical ability
o Do they have the technical ability?
o Is there a program of product development and improvement?
o Can they assist in improving your product?
· Manufacturing capability
o Can they consistently meet the specifications and quality desired?
§ Quality control program
§ Competent personal
o Do they have good manufacturing planning and control systems?
§ To supply information on delivery
· Reliability
o Reputable
o Stable
o Financial strong
· After-sales service
o Service organization
o Supply of spare part
o Technical support
· Supplier location
o Location may effect to delivery time
o Local inventories
o May be required for after-sales service?
§ Will your customer require service?
· Price
o Not always the lowest price
o May include the other service
· Other consideration
o Credit terms
o Willingness to hold inventory
o JIT
o Information technology
Copyright @ Arnold, Chapman and Clive: Intro to Material Management, 6th Ed.
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