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The factors of influencing supplier selection

- Mar 02, 2018 -

Suppliers are part of the open system of supply chain, and the choice of suppliers will also be affected by various economic, political and other factors.


1. quality factors

Quality is the basis for the survival of the supply chain. The value of the product is based on the product quality, which determines the quality of the final consumer goods, and affects the market competitiveness and share of the products. Therefore, quality is an important factor in the selection of suppliers.

2. price factors 

Low prices mean that enterprises can reduce the cost of production and operation, and play an important role in improving competitiveness and increasing profits for enterprises. They are also important factors to choose suppliers. But the lowest price suppliers are not necessarily the most appropriate, and the quality of the products, the time of delivery and the cost of transportation need to be considered.

3. delivery on time factor

The timely delivery of products on time to the agreed time and place directly affects the continuity of enterprise production and supply activities. It will also affect the inventory level of supply chain at all levels, and then affect the reaction speed of enterprises to the market, and interrupt the production plan and sales plan of producers.

4. varieties of flexible factors

If we want to survive and develop in the fierce competition, the products produced by enterprises must be diversified to meet the needs of consumers, so as to achieve the purpose of occupying market and gaining profits. The diversification of the product is based on the variety flexibility of the supplier, which determines the types of consumer goods.

5. other influencing factors

Including design ability, special process ability, overall service level, project management ability and so on.

According to the research and survey of "CIMS- supply chain management" in 1997, data show that the main quality of Chinese enterprises when choosing suppliers is quality. About 98.5% of enterprises consider quality factors, followed by price.


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