VI.1. Qualifying
Suppliers
Having selected target-countries, and in order to identify prospective suppliers,
you need to define the traits of candidates according to your objectives. That
profile will help you identify, short-list and screen prospective suppliers. |
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VI.2. Research, Evaluate, Interview, and Select Suppliers
Then, contact all listed companies through air mail, fax or email. Clearly state
your business proposition, your objectives and the procedure of supplier selection.
Once prospective suppliers have indicated their interest in your offer, it is important to
determine their legitimacy and financial soundness. The financial condition of prospective
suppliers should figure heavily when determining the appropriate working
relationship. Some of the respondents will certainly not pass this stage of the
selection process. |
The survivors of this first screening, should undergo further research based mostly
on their past performance.
After the financial test, past performance should be an important part of your supplier
qualifications process.
Find out how the supplier’s performance ratings compare with average satisfaction
scores for its industry and with our own goals. |
Contact randomly selected customers of your prospective supplier and asks them to
rate that supplier on key performance measurements, such as:
| - Delivery timeliness |
| - Problem responsiveness |
| - Product quality |
| - Total cost |
| - Technical support |
| - Quantities delivered |
| - Personnel attitude |
|
Calculate an overall satisfaction rating from ratings in the key performance
measurement categories.
Then, illustrate the supplier’s performance ratings compared to each other and
identify each supplier’s weaknesses and strengths.
Finally, rank your prospective suppliers to create a list of preferred suppliers based,
this time, on acceptable risk and your internal standards. |
To this list of preferred suppliers additional information should be gathered on
them, such as:
| - Can the product be manufactured from the present
facilities or will an additional production capability be required? |
| - Does the present manufacturing operation have the
capacity to handle the anticipated level of orders? |
| - Does the company have the operational flexibility
to switch, particularly if the product's specification varies or is subject to minimum volume
requirements? |
| - For service companies, is the requisite expertise
available in the potential overseas supplier markets? |
| - Will the company have to send home office staff
or station expatriate personnel abroad in order to global purchase? |
| - Are the services subject to professional
licensing or other forms of regulatory oversight? |
|
The following, and most important, step will be to establish relationships with the
preferred prospective suppliers. This should involve face-to-face meetings with the
principals. |
In addition, you need to negotiate the appropriate legal agreement with the
counterpart firm selected. |
Some tips in your search and evaluation of prospective suppliers if you do not have
in-house resources or if you are not using an international business consultant:
- Credit Reporting Firms - Firms like Graydon
America and Dun & Bradstreet offer timely credit reports on overseas
companies.
The fee for these reports typically varies according to the region of the world and the
promised delivery time for the report. |
| - Dun & Bradstreet also maintains a Web site
where users can order Business Background Reports on-line. |
|
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Other sources of information on overseas
companies include:
| - Company Directories |
- International Banks
Remy M. Mauduit |
|
Comprehensive business literature at the Business Bookstore (in association with amazon.com). |
The Mauduit Group delivers effective,
measurable results. |
