The Importance of Ongoing Supplier Evaluation

When a company discovers that they’re either purchasing something significant in an unstructured way or the need arises for a new category of purchases, it’s common for multiple suppliers to be evaluated. During the evaluation process, everything from best price to expected reliability will be taken into account. Depending on the number of potential suppliers that are being evaluated, the process can take a little time. But because it’s the only reliable way to optimize pricing while also ensuring that delivery will be handled in an optimal way, this process is a smart use of resources. The only real issue with supplier evaluations is that within many organizations, they are something that are only done one time. Once a decision is made after the initial evaluation, that’s what everyone sticks with. Although it’s easy to understand why people often fall into the same pattern, that doesn’t mean it’s the optimal course of action. Why Strategic Sourcing Matters As long as the supplier evaluation process is completed prior to the start of a new relationship, it generally ensures that supplier relationships will start off on a positive note. However, what many companies forget is just because a supplier relationship starts off great doesn’t mean it will stay that way forever. The reality of the modern business environment is that things change. From pricing increases to longer and longer lead times, there are a variety of things a supplier may start doing that just don’t work for your company. While these types of things may start off as inconveniences, they can quickly snowball into very real problems. Since a major problem with a key supplier can leave a company in a significant bind, it’s a great example of why supplier evaluation shouldn’t end after a relationship begins. Instead, it’s something that should continue to happen. By having policies and systems in place for this type of evaluation, a company can protect themselves against being in a situation where they suddenly realize that a supplier is no longer capable of properly delivering what’s needed. How Purchasing Software Can Help with Ongoing Evaluations Once companies realize the issues that can arise if ongoing supplier evaluations aren’t in place, they generally want to know what needs to be done to get the ball rolling with this process. Of all the possible answers to that question, the most notable is ensuring that purchasing managers are properly equipped to stay on top of this task. The best way to give purchasing managers what they need to regularly evaluate suppliers is through software. By having access to Bellwether Purchasing Software, purchasing managers will have access to pricing information and other historical data about vendors. This access makes it easier than ever for purchasing managers to periodically evaluate suppliers in the most accurate way possible. To see how our purchasing software can be customized for your business, contact us for a Free Live Demo, or try our software FREE for 30 Days– no credit card needed.