How Do You Choose The Best Supplier?

The interesting thing about it, after a few years and taken a couple of knocks on pricing. I normally would ask (3) quotes and I no longer just look at the bottom dollar (normally), and the only time I do is when the RFQ on one is are more than 15% difference either way. That will shake me and thinking that there is something not correct with the cheaper RFQ.

I have felt that a tightly run shop, it is very difficult to under bid your competitor. To do any type of work, it requires time (Machine) and effort (skill) , and any established shop that has a solid history the quotes/work tend to be very competitive. How it does it does not matter the portion of either More Time/Less Effort or Less Time/More Effort.

I suspect you were talking to an Accountant.

They famously run businesses "efficiently" right up until the banks close the factory doors.

Sorry but the whole information aquisition + Header - is wrong !!

Yoy have to choose at least 2 Best Suppliers (better:3 !!)

The questionary is good for a new company !!-and questions asked are grotesque;

If they have ISO 9001 - it also answers material certification tracing

If they are in "Nowhere" - you could figure it for youself

"Will a real human answer the phone"..(?!?!),don't think that robots replaced humans

There is allways an opportunity to meet "the newest kid on the block" !!

For established suppliers for your Facility - you have all other answers collected by now

The most important key to work with "Best Suppliers"-is to "keep them alive"....

- by making a second pricing RFQ with the best price as a bench mark!!

- and if possible to divide quantity inbetween (you will see that price difference will be

quite low)

(of cousre that they have the quality and delivery you can depend on)

Very interesting subject. It is not only applicable to machining jobs but also to finished products. If we discuss about job work charges my comments are as under:-

1.It depends upon the type of job you would like to get machined. If it is simple turning job not requiring high accuracy then you can rely on small shop with simple lathe even old one. This shop will be cheaper and most competitive.

2.If you have accurate job to be done in large quantity,then you have to approach shop with CNC lathe.This shop will be costlier but you are assured of accuracy.

3. Of course there are many other factors as cited by you which are to be considered before selecting vendor.

As for as products are concerned there are various factors which need to be considered. These are as under:-

1.Quality of the product. Does it carry quality certifications?.

2.Reliability of the product and its mfr.

3. Does it conform to national/international specifications.

4. Past performance, is the brand name well known in the industry.

5.Service back up and availability of spares and interchangeability with original worn out parts.

6. Lastly price quoted by the distributer, is it competitive?. It may be expensive than imported China make, but it will be preferred as being long lasting reliable product.

Dear Mr. SureshSharma,

I want to supplement to your Points.

'Contacting the Customers on Annual Basis by convening a coference, and high light the new product/ developments."

"Contacting the Customers through a Monthly Magazine or Quarterly Magazine and ask Customers to share their Experience"

"Conduct some Training Class (of course - for a nominal fee) for the staff of the customers"

DHAYANANADHAN.S

You are talking Cost of Poor Quality issues. Is hourly rate the only thing the customer wanted to know? I have problems with people who act as though a proper decision can be made with only one data point.

Great post thanks for sharing.

Hi Neha, Welcome to CR4. Are you new member?. Many things to learn here.