Methods of assessment and selection of suppliers

Abstract

The main aim of this article is to present methods for selection and assessment suppliers that ensure the proper functioning of the company. Appropriate choice of procedures and criteria for choosing suppliers and subsequent assessment of the cooperation with them determines the quality of manufactured product, as well as the purchasing effectiveness. In case of procedure selection, it contains these main steps: updating the list of material groups, the selection of tenders, preparing or updating the list of qualified suppliers, periodic assessment and verification of suppliers list. Each company selects assessment criteria depending on the type of running business. In the case of production company takes into account, for example: quality, price, timeliness and completeness of supply, the level of service, or payment terms. An integral part of selection and assessment suppliers is also a risk assessment of cooperation with the supplier, at which we should take into consideration the type of purchased product and its importance for the company. Following these assessments it is easier to determine, which suppliers are the best to work with, which actions put to attitude towards suppliers in a situation of enhanced monitoring, or decide to end or extend the cooperation.