The following are the factors that OSI considers when assessing new vendor:
1. COMPETENCY- Assess the vendor’s capabilities measured against OSI’s needs. If possible obtain information regarding the vendor’s current customers whose needs and values are similar to OSI’s, and how long they have been a supplier to those customers.
2. CAPACITY- Assess the vendor’s resources to meet OSI’s requirements and needs, and how quickly will they be able to respond to these.
3. PRICING- Assess the price of the product or services that the vendor will provide and whether it is comparable to those vendors providing similar products or services.
4. QUALITY– Assess the vendor’s understanding of OSI’s requirements and its commitment to high quality standards and to delivering the required order, whatever the needs of their other customers. Where appropriate, look for quality initiatives within the organization, such as ISO 9001:2008. Assess the vendor’s quality support and how it will respond to resolution of a problem in a timely manner. Determine what warranty terms the vendor provides.
5. FINANCIAL STABILITY – Assess if the vendor is in good financial health and able to weather the ups and downs of an uncertain economy. Determine what information the vendor can offer to demonstrate its ongoing financial strength.
6. PROCESS CONTROL- Assess if the vendor has processes and procedures in place to ensure it will deliver consistently and reliably.
7. DELIVERY – Assess how the vendor will deliver the product or services on time, and their average time for delivery. It should be comparable to other vendors for similar products or services. Inquire about the packaging of the product: for example, is it sturdy, suitable and properly marked, and what documentation will be provided with the delivery? Determine also if the vendor is capable of an emergency delivery, if requested.
8. COMMUNICATION- Assess the vendor’s communication approaches and who will be your contact person. Ask how the supplier will handle communication in the event of a crisis and how quickly notification will be made if there’s a supply disruption.