Tips to Choosing the Best Supplier for Procurement

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One of the most important responsibilities of procurement department is to choose the best supplier. This is important for the company to ensure the supplier offers the best price, quality and quantity for the purchased products and also ensure that it is delivered on time. If you don’t know how to choose the best supplier, then these helpful tips will help you.

1. Set a Clear Criteria – Certain criteria goes behind when it comes to making a list of best suppliers. These are some of the things to consider when it comes to setting a few criteria’s.

  • After receiving the order, how long will it take for the goods to be delivered.
  • Storing and handling of the products will require a facility.
  • What are the terms and conditions when it comes to payment.
  • For returning of a product, what are the policies.
  • Amount of minimum and maximum quantity for the order.

2. Define the Process – You need to think on additional methods when it comes to finding the best suppliers. Moreover, you need to consider additional sources when it comes to publishing for requirement of suppliers.

3. Call for Bids – Selection of supplier’s needs calling for bids. For instance; RFP (Request for Proposal) or RFQ (Request for Quotation) requires mentioning in detail about the products delivery time, quantity and quality.

If this becomes a bit too much, then you can always consider undergoing procurement management training programs to understand about SCM better.