Decision Making Tools: Part IV: Evaluating Vendor Performance
Our view of the world is determined by our set of assumptions about it. To put it in another way, our vision is often affected by what we believe about the world; our beliefs often determine the information that we "see "---Arsham¹
As stated in earlier paper, decision making process is a conscious effort and is about facing a situation or a question. Good decisions are not flukes but are efficient and effective conclusions made by putting to use a well engineered plan and a well focused process by defining a model. The decision making model shall represent a way of looking at the problem considering a set of assumptions that enable us to understand and evaluate the predictable outcome.
All business organizations engaged in manufacturing depend on many suppliers who may be manufactures, service providers or merchants to supply the needed commodity at the right time at the right price and of right quality to be able to manufacture the right product at right price possessing the right demanded quality. For any business it is therefore imperative to choose suppliers that qualify for the procurement of the merchandise supply. Suppliers are strategic partners in todays competitive world. The goal of supplier partnership shall be to create a business relation of trust where both partners win. Each suppliers production capacity, financial stability, technical competence and quality of merchandise must be evaluated by visiting the works of the supplier and a thorough supplier research shall be conducted. In this paper we discuss the purpose and procedures of vendor evaluation.
About the Author:
The author is the Executive Director of Sportking Institute of Fashion Technology, Ludhiana and has working experience of over thirty years in knitting. He is also a qualified professional in Total Quality Management, Kaizen and Lean Production. He has 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 knitting machine manufacturers for many years. Currently he also looks after the interests of Toyota Tsusho India Pvt. Ltd. an associate company of the famous Toyota Automobile Company of Japan for Punjab and surrounding areas. He is also working as a marketing consultant for a Chinese Machinery Manufacturing Company and as TQM consultant for a few Knitwear Companies.
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[¹] Arsham, Professor Hossein. "Leadership Decision Making "