Have you ever partnered with a supplier/vendor only to realize that you made the wrong choice? For example, suppose you found a supplier who offered a good price and timely delivery. Everything was looking rosy until you realized the products’ quality didn’t meet your standards.
No matter the business, suppliers/vendors play a crucial role in a company’s success. One wrong choice can cost you a lot! The mismatches between a company’s requirements and the supplier’s offerings can delay projects, add costs, or destroy client relationships.
Therefore, selecting the right supplier or vendor to meet your business’s key requirements is necessary. This is where Ray Carter’s 10C model of supplier/vendor evaluations can help you.
It is a standardized procedure that helps you evaluate supplier/vendor performance to ensure smooth business operations and profitability. Let’s see how the 10C model of supplier and vendor evaluation simplifies your work.
Outlined by Dr. Ray Carter, 10Cs of supplier or vendor evaluation is a model to assess a potential supplier’s sustainability. The 10 criteria help you decide on the best partners for your business’s specific needs.
Competency
First, determine a supplier’s level of competency. Make a thorough assessment of your suppliers’ capabilities, measure them against your needs, and ask what other customers think. Ask if they had any problems working with this supplier. Does this supplier have the skills or equipment to deliver the products you need?
Capacity
Is the supplier capable of handling the company’s requirements? If they don’t have adequate equipment, staff, or materials, it might result in business disruption. Research the suppliers’ resources to ensure that they have the capacity to help you.
Commitment
Whether it is about operating below a minimum order defect rate or staying compliant with industry and government standards, the supplier should produce evidence of their commitment. The best way to understand the quality of their work is through certifications such as ISO or Six Sigma. Also, look for evidence of ongoing commitments with other customers.
Control
The suppliers can control their processes, procedures, and policies. If they rely on other organizations for materials or have scarce resources, how can they ensure a reliable and consistent performance?
A Pro Tip – You can use bid management software to outline your organization’s requirements. With this tool, you can create customized vendor/supplier evaluation criteria that become the standard you want bid managers to meet.
Cash
If the supplier doesn’t have enough finances to keep pace with your organization’s needs, they won’t maintain a consistent supply. You might run into trouble if you choose to partner with them. Look for cash-positive firms that can show their financial strength.
Cost
The ultimate goal of a business is to generate profit. One key criterion for sourcing the right supplier is considering the cost of products and services they provide. You might find suppliers who offer huge discounts on quantity, which appeals to small businesses. Similarly, suppliers increase the purchase cost to meet their marketing expenses but offer the same quality product.
In that case, you should ask what additional benefits a supplier with higher cost offers over others. Keep in mind that cost shouldn’t be the deciding factor in your decision-making process. It includes more than just focusing on cost.
Consistency
Does the supplier have a record of consistency? Do they deliver products and services on time? While you can’t expect perfection all the time, they should have adequate processes and resources in place to consistently deliver the results you need.
Culture
If the supplier shares similar cultural values as your organization, it can build a strong foundation for the future. You can look for suppliers who have been recognized in the industry for cultural excellence.
Clean (Corporate Social Responsibility)
Organizations must focus on sustainability and reducing their environmental footprint. Ask the supplier to produce evidence of green accolades or practices they employ to adhere to local, state, and federal environmental laws.
Communication
Good communication is key to ensure everyone is on the same page. Find out your point of contact at the firm. In the event of supply disruption or crisis, you need to know who to contact.
How Can Bid Management Software Help?
A bid management software can help streamline the process of supplier/vendor evaluation. With this dedicated tool, you can efficiently and consistently communicate all your tendering activities. The software allows you to set bid qualification criteria, foster better communication between vendor and bid manager, create tenders (RFx’s), and develop evaluation processes.
Additionally, a BMS helps you-
Here are the top considerations per Carter’s 10C model, which you need to remember while sourcing a supplier. As a procurement leader, you can remove some of the burdens off your shoulder by using Beyond Intranet’s bid management software.
