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Derek Walton blog

Evaluation of suppliers

Posted on 30/9/2013 at 18:18

The competent supplier selection is crucial. Not making good suppliers are wasted all the efforts made in the logistics chain. Although also include other less quantifiable factors, such as technical support, after sales service, etc.., Which have substantial value for the company. Actually, each of these indices encompasses different concepts, so the price index may be the result of the level, payment terms, discounts, etc.. The service may include delivery, availability, reliability, etc.., Which may result in an index calculation a little more elaborate, depending on certain criteria to apply the company. It is usual to weigh each of these indices to achieve a unique index of evaluation. The weighting factors depend on the judgment of the company.  Another more structured approach to selecting a potential supplier is to evaluate the company, its NS and or products you need to give us.

Personal shopping profile:
The importance of general utility buyer, the image formed by the consumer for the price, quality and variety in the assortment, the increase or decrease in inventory carrying costs, the market changing and permanent treatment suppliers are some of the reasons why an organization should hire purchasing staff.

These human resources must meet personality characteristics, education and leadership commensurate with their responsibilities. Executives who do not strive to make sound decisions on personnel, will be playing not only with the performance of the company, but with the same respect.

Being clear about how to maintain and optimize the bargaining power to achieve the vision of each company, it is feasible to develop appropriate internal processes to meet the parties, and generate a good image to customers and shareholders in order to achieve financial success from the perspective of a system and a strategy of purchasing and supply optimum.
In this context, the prevailing trend is to reduce the number of suppliers, in order to delegate to them (just in time) work as quality control, storage, transportation, design and procurement of new inputs. Although not a critical factor, the price is still an important aspect in the selection of suppliers.


Credits and rebates are applied on the amount of the aeroterme merchandise. The discount calculation is performed as follows:
Trade discount is a percentage that is calculated on the amount of each item or on the sum of the amounts if they all have the same as a percentage. When the manufacturer gives the discount to the wholesaler for performing storage and distribution functions called functional discount. For example, suppose a manufacturer reflected in their price list discounts of 5 and 8 %, applied to 5% retail and wholesale both. But these percentages do not add up, each discount is calculated on the amount resulting after applying the precedent.

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