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Warning Signs That Your Supplier Is a Problem

Why performance evaluations are critical

Manufacturing Extension Partnership MEP
Wed, 03/09/2016 - 16:04
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Whether it’s for performance management or for risk, it’s important to know who your suppliers are and have a close business relationship with them.

ADVERTISEMENT

It’s a given you should already have a strong relationship with your key suppliers, but how often does your supplier request the following items?
• Cash
• Urgent price changes
• Sending payments to a different address
• Check pickup
• Funding for capital expenditures
• Requests to purchase materials on supplier’s behalf
• Inventory buy-back
• Accommodation agreement (i.e., a loan)
• Delay of cost reductions
• Resourcing all or some of the components it supplies
• Lengthening delivery times

If your supplier frequently asks for these things, then it’s time to reevaluate what other ways your supply chain is being put at risk.

 …

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