Checklist for evaluation of potential supplier –
1. Competency: Capabilities assessment – measurement against our requirement.
2. Capacity: Supplier’s available resources to meet our orders (staff, equipment, storage, and available materials.)
3. Commitment to Quality: Commitment to high quality standards. ISO 9001 or Six Sigma etc.
4. Financial Health – Cash-positive firms are in a much better position to weather economic ups and downs.
5. Process Controls: Control over policies, processes, procedures, and supply chain. How will the supplier ensure that they consistently provide high quality goods or services?
6. Cost: Total cost of the product or service that the supplier provides. How does it compare with the other options?
7. Culture: workplace ethics & values. Environmental policies
8. Communication: proposed communication approaches should align with our preferred methods. How the supplier will handle communications in the event of a crisis, notify supply disruption etc. Will we be able to reach senior people, if we need to?