Decision Making Tools: Part IV: EvaluatingVendor Performance

Our view of the world isdetermined by our set of assumptions about it. To put it in another way, ourvision is often affected by what we believe about the world; our beliefs oftendetermine the information that we "see "---Arsham¹

As stated in earlierpaper, decision making process is a conscious effort and is about facing asituation or a question. Good decisions are not flukes but are efficient andeffective conclusions made by putting to use a well engineered plan and a wellfocused process by defining a model. The decision making model shall representa way of looking at the problem considering a set of assumptions that enable usto understand and evaluate the predictable outcome.

All business organizationsengaged in manufacturing depend on many suppliers who may be manufactures,service providers or merchants to supply the needed commodity at the right timeat the right price and of right quality to be able to manufacture the rightproduct at right price possessing the right demanded quality. For any businessit is therefore imperative to choose suppliers that qualify for the procurementof the merchandise supply. Suppliers are strategic partners in todayscompetitive world. The goal of supplier partnership shall be to create abusiness relation of trust where both partners win. Each suppliers productioncapacity, financial stability, technical competence and quality of merchandisemust be evaluated by visiting the works of the supplier and a thorough supplierresearch shall be conducted. In this paper we discuss the purpose andprocedures of vendor evaluation.

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About the Author:

The author is the ExecutiveDirector of Sportking Institute of Fashion Technology, Ludhiana and has workingexperience of over thirty years in knitting. He is also a qualifiedprofessional in Total Quality Management, Kaizen and Lean Production. Hehas his own company in the name and style of M/s Techknit Overseas Pvt. Ltd.and has worked as Indian agent of the top three computerized flat bed knittingmachine manufacturers for many years. Currently he also looks after theinterests of Toyota Tsusho India Pvt. Ltd. an associate company of the famousToyota Automobile Company of Japan for Punjab and surrounding areas. He is alsoworking as a marketing consultant for a Chinese Machinery Manufacturing Companyand as TQM consultant for a few Knitwear Companies.

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[¹] Arsham, Professor Hossein. "Leadership Decision Making "