The procedure for selection of the right suppliers is essential to make managing the business easier and achieving the required profit. Every business is concerned with making money in the most efficient way. The right supplier can provide the necessary amount of material at the right time making the business people happy as well as satisfy the customer needs. When the budget is within the limits and the suppliers are flexible it gives a boost to the company
Time as an Evaluation Criteria for Supplier Selection
The most important criteria for selection of a supplier is Time. An efficient supplier will deliver the raw materials or sub-products at the most appropriate time. If the materials required for the manufacturing are not supplied on time the business organization have to wait long to get the products produced and the customers also might seek other products available in the market. As consumers find other products it also will affect the business in a serious way. The delay in getting materials through suppliers eventually result in the loss of business. Due to this timeliness is the primary criteria for choosing the right supplier.
Budget as an Evaluation Criteria for Supplier Selection
The best supplier will be able to supply the raw materials at a competitive price which makes the business more profitable. If there is the increase in the amount of bill to be paid the business will find it difficult to compensate and will have to see other means to pay it. If the increase in price is occurring in between a project phase it will be difficult to find an alternative supplier who can substitute the order materials. So it is essential to select a supplier based on a consistent budget.
Flexibility as an Evaluation Criteria for Supplier Selection
For most business, there may arise a situation which is unseen during the project and a good supplier will be able to accommodate to these kinds of situations. When natural calamities or inconvenience in storing the raw material may arise at times which will make the supplier to deliver the raw materials at the appropriate times and store more materials at their place. If a supplier refuses to store raw material at their place instead of the company to which it is supplied the concerned business have to look for other alternative storage locations. So it is advisable to select the right supplier based on flexibility parameters.