The Real Cost of the Wrong Supplier
A Deloitte study found that supply chain disruptions cost companies an average of 45% of a year's earnings.
Supplier Evaluation Framework in 5 Dimensions
1. Capacity and Scalability
Can the supplier meet your current needs? What if your volume grows 50% in the next year?
2. Financial Stability
A supplier with financial problems is an operational risk. Request basic financial statements and investigate their payment history.
3. Quality and Control Processes
Do they have relevant quality certifications for your industry? Request references from current clients.
