Question

The supplier selection process has become increasingly more strategic to many organizations. What factors determine how extensive and robust a supplier selection process might be? (You can include what criteria you would use to actually select the supplier, but this question is asking what process you would go through to select.)

Does the performance of the supplier and the inbound logistics activities have an impact on the final customer? If so, how? Why?

Answer 1

Factors that determine how extensive and robust a supplier selection process might be are:

• Supplier search and comparison on basis of price, delivery, payment terms, other terms & conditions, market reputation, response time, customer satisfaction quotient and relationship building.
• Negotiation for optimization.
• Response to customer feedback and complaints.
• Price contracts for regularly required products.

The performance of the supplier and the inbound logistics activities have an impact on the final customer in terms of on-time delivery, quality as per customer standards, efficiency and able to match the professional commitments w.r.t. several aspects. The supply chain management has a very vital role in the achieving customer satisfaction.