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          Jiangsu Wanlong Chemical Co., Ltd.
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          Report: the Criteria on Potential Supplier Selection
          16/03/2012

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          1) Introduction
          The purpose of this report is to analysis and evaluate some main criteria on potential supplier selection.3 Agents that May Bring Mark to Your Inspired dichlorobenzaldehyde. For purchasers, they usually evaluate potential suppliers across multiple categories using their own selection criteria. There are lots of criteria to choose the supplier. As per time, it includes short term standard and long term standard. It’s no doubt that we must take both short and long term standards into consideration. In order to find potential supplier, we should combine the both standards and evaluating the supplier by it.
          2) Analysis
          There are four main short term criteria on provider selection: quality, costs, deliveries and services.
          2-1) Quality:
          It is the prerequisite that the quality of purchased merchandise correspond to the requirement of purchaser. Although buying some products which are both lower quality and lower price can reduce the purchasing cost, the total cost of enterprises will be increase. Because using the products with poor condition will effect the sustainable development and quality of final output. And all of that will be reflected by gross cost. On the contrary, the products with over-high quality do not means they are fit for the particular company. If the quality is so perfect that surpasses the quality of requirement, it will be a kind of wasting to corporations. Therefore, the request of quality in purchasing is tally with business producing, neither too high nor too low.
          2-2) Costs
          Costs include not only the price of purchasing, but also all the expenditure in using raw materials and components. Reasonable and competitive price is a significant factor to choose a good supplier. However, the lowest-price supplier doesn’t mean the fittest. If the supplier cannot reach the request of quality and delivery, or the freight charge increasing due to far apart geographically, the gross costs will be raised. So it is the gross costs that one of most important elements the companies must think about.
          2-3) Deliveries
          Whether suppliers can provide products as per the deadline and the appointed standard influence the sustainability of enterprises. So that the time for delivery is also one thing that purchasers must refer to. The companies should think over two things about the time. One is to reduce the reservation of raw material and component in using so that to reduce the capital of the stocks occupation and other fees related to reserves. The other is to cut down the risk of work suspension and to guarantee the constancy of producing. Combining these two aspects, the request of delivery should be like this: whenever the users need, the products are delivered in time, neither early nor late.
          2-4) Services
          The integrated level of services means the capability and attitude of all the work process in suppliers to cooperate with purchasers. If the purchasers don’t have the knowledge about how to use the merchandise they buying, it is responsible for the suppliers to train or teach the usage of production. The main criteria to evaluate the services include following respects: installation, maintenance, technique support, etc.
          2-4-1)Installation: through the service of installing, purchasers could condense the time for putting into production/ operation of equipments.
          2-4-2) Maintenance: Reparing for free protects the interests of buyers. In the mean time,it requires higher standard to the products which are provided by sellers. Thereupon, the suppliers will leave no stone unturned to increase quality of products so that to avoid or at least decline free-maintenance.
          2-4-3) Technique Support: If the suppliers provide relavant techique supports to purchasers, then they can be saling their commodities as well as resolving the problems for buyers.4 Important Things that You May not Know about benzyl chloride. For example,as the offsprings in information age upgrade rapidly, it’s attractive to purchasers that they provide services of updating technique support. It also shows their competitive advantages.
          Other criteria to astimate services contain the training or teaching of the way to use new products. If the buyers do not have a clear knowlegde to the commodities they bought, then the suppliers should take responsibility for training the usage of products. The training process before/ after selling will also play an important role for purchasers to choose potential suppliers.
          All the information above discussing about the short term criteria. Futhermore, there are some long term standard which companies should ponder over. The long term critera on supplier selection lie in that whether the suppliers promise to provide goods extendedly and steadly, whether the producing capacity could expand to match up the growth of corporation, whether the development of commodities would accord with the request of enterprises and whether both parties have a long-range willing to coorperate.There are four respects of long term criteria: perfect interior organization of providers, sound quality management system, advanced interior device and equipment & maintenance and stable financial situation.
          3-1) Perfect interior organization: the interior organization and management affect the efficiency of providing and quality of service. If the inner construction are orderless, the effeciency and quality of purchasing will be decreasing. Even due to buck-passing among several providers, the supply activities cannot complete timely and with high-quality.
          3-2) Sound quality management system: When the purchasers evaluate whether providers meet the requirments of them, one of the most important links is they will check whether the providers adopting the relavant quality management system, for instant, the ISO9000 Quality System Certificaton. And they will check whether the staff of suppliers follow instructionsof ISO9000to the letter.
          3-3) Advanced interior device and equipment & maintenance:
          We can find out how managers attach importance to the equipment and quality of products throughout the extent of advanced interior devices and situation of maintenance. It also shows the level of inner management. If the working machine are out-of-date with lots of dust and oil, we are hard to image that this kind of enterprise will produce quilified merchandise.
          3-4) Stable financial situation: The financial standing influence directly the performance delivery and fulfillment. If there are cash flow problems within the financial status of suppliers, the delivery will be affected, then the producing of enterprises will be affected, too.
          As far as I concerned, the quality of goods supplied by providers is most important element the purchasers must think over. Because:1) the quality is the materials which constitute social wealth. We can’t talk about quantity and economic values if there is no quality. So the enterprises must stick to the criteria of quality in choosing potential suppliers.
          2)Quality reflects comprehensively the coordination between science & technology and cutural level. We can see that products, in the aspect of designing, creating and using, or in the terms of upgrading and improving, are all concentrate the latest achivements of modern science and technology, modern management and cultural development. If the prospective providers cannot catch up with mordern IT skills or modern civilization, not to mention the products they supply.
          3) Quality consists the life of enterprises.

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