Customer Service and Supplier

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Since the business environment is getting more and more competitive, market conditions across all over the world become more challenging than ever. And in a large extent, those competitive strengths are kinds of transformed to cost pressures which have been more progressively passed back to the suppliers (Reinecke, 2007). As a result, the supplier selection process becomes a remarkable amount of a company’s financial resources. At the same time, companies also would like to see considerable benefits from contracting with suppliers who can propose high values. It is easy to find a supplier everywhere; however it is hard to distinguish who are already prepared to enter into the competition seriously and who is the best of it with such plenty of supply chain (Swan, 1976). Therefore, for all the perspective of main buyers in value-adding enterprises, the critical issue is no wonder pointed out to supplier selection (Hirakubo, 1998). In this essay, the typical selection criteria to rightly select the suppliers would be introduced, which are including identifying potential suppliers criteria, supportive supplier criteria, service performance criteria, product performance criteria and cost criteria. To start with identifying potential suppliers criteria, at the first place, it is very important that company itself do not only hold existing suppliers, but also have to discover new suppliers in order to survive in the powerfully and competitive worldwide economy (Reindcke, 2007). A firm knows how to find out new suppliers always plays a significant role for this criterion; and always do not forget to find a new supplier. There are many existing new suppliers that are very good at some works and normally they are being neglected since the company always keeps the existing suppliers profile (Ranks, 2012). Some of them may have skills and production technology to help reduce the cost or others may be able to remain a lower labor amount. So always keep cooperating with existing suppliers would easily lose the first chance to win at the starting point. Furthermore, additional suppliers are needed. This is because they would simply reduce the company’s risks and help to meet the business objectives. It is no doubt that more suppliers are better than less. With diversity of business contract, more suppliers for selection has more comparative advantages which can reduce the risks to lose the contract, and also more chances and choices can be satisfied with major firm to meet the business objectives (Ranks, 2012). In the second place, verification of supplier’s abilities and qualifications is a proactive step that must do in order to ensure whether this supplier is reliable or not (Schmit, 2008). These can be done through company policy checks, previous reference checks, financial status checks and emergency capacity availability. Company policy checks is a basic requirement that can make employer know more about suppliers’ variety of business objective and standard procedures to make sure continuous adherence to quality standards. Previous reference checks is the buyer should contact former customers and ask them about the performance of this supplier, adherence to contract term and how they generally deal with problems. Financial checks is to look into financial viabilities in the short term or medium term which verifies the supplier’s financial status. If the supplier has amount of debts then those may cause risks for employer selecting them. Emergency capacity availability has to be checked since this is a kind of ability to review when the emergency problems arise, how they are going to resolve. In the third place, it is necessary for the company to create a database for those who are new potential suppliers and manage both new and existing suppliers (Lill, 2012). This is not only because identifying pre-qualified suppliers who are going to compete for the contracts becomes more straightforward, but also helping buyers to save...
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