Supplier Ranking

Supplier Ranking

 

If done correctly one can rank suppliers form unacceptable to exceptional.

 

  • Unacceptable Suppliers – these suppliers fail to meet operational and strategic needs of the buying organization.  Discontinuing business with unacceptable suppliers and substituting better suppliers is the normal action required.
  • Acceptable Suppliers – these suppliers meet current operational needs as required by contract.  Acceptable suppliers provide a performance other purchaser could emulate, and hence do not provide a basis for a competitive edge.
  • Preferred Suppliers – Buyers have a system or process orientation with preferred suppliers and this integration avoids unnecessary duplication and speeds up transactions that normally are handled on an electronic basis.  Preferred suppliers meet all operational and some strategic needs of the buying organization.
  • Exceptional Suppliers – these suppliers anticipate operational and strategic needs of the buyer and are capable of meeting and exceeding them.  With exceptional suppliers, mutual breakthroughs may be a source of competitive advantage.