The process standards of vendor management

Buyers choose suppliers to establish strategic partnerships, control the risk of relationships between the two parties and develop a dynamic supplier evaluation system are several issues that buyers generally care about. As the basis and prerequisite for the normal operation of the supply chain, the evaluation and selection of suppliers are becoming the hottest topic among enterprises.

Different companies are staying at different development stages, and the selection and evaluation indicators of suppliers are also different. So how can we objectively evaluate and select suppliers through quantitative indicators?

The basic idea is： periodic continuous evaluation, network management, key point control and a dynamic learning process. These ideas are all reflected in the establishment, operation and maintenance of the supplier evaluation system.

1. Establish a staged evaluation system for suppliers

Adopt the method of continuous evaluation in stages, the supplier evaluation system is divided into several aspects: supplier entry evaluation, operation evaluation, supplier problem guidance, improvement evaluation and supplier strategic partnership evaluation. The characteristics of the staged evaluation system are the transparency of the process and the openness of the operation. The establishment, revision and release of all processes are carried out through certain control procedures to ensure relative stability. Evaluation indicators should be quantified as much as possible to reduce subjective interference factors.

2. Embody network management

Network management mainly refers to the management method of connecting different information points into a network in terms of the coordination of management organization structure.

Networked management is also reflected in the objectivity of business and the implementation and supervision of processes. The supervision mechanism is reflected in all aspects of the work. Human factors should be minimized, and the transparency and institutionalization of the operation and decision-making process should be strengthened.

3. Four principles of critical point control

  The key point control includes the matching principle, the half ratio principle, the supply source quantity control principle and the supply chain strategy principle.

4. Vendor management system maintenance

The operation of the supplier management system requires different detailed evaluations according to different industries, enterprises, product needs and competitive environments. What’s more, short-term competitive bidding and long-term contracts and strategic supplier relationships can co-exist.