Discus the selection of preferred supplier
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Supplier Management: Six Steps to Selecting the Right Supplier
If you asked a food manufacturer 20 years ago how they selected an ingredient supplier, they would have likely said it was based on price, flavor or the supplier location and preference. However, as government and industry put a stronger emphasis on food safety and quality, evaluating and selecting the right supplier today has become much more critical and complex.
Selecting the right supplier may seem like an onerous process for your supply chain. While having a more simplistic supplier selection process may be helpful for some smaller supply chains, a more involved process of selecting the right suppliers can help many food and nutrition companies meet or exceed regulatory standards, drive customer demand and build a strong brand reputation of quality products (see “Supplier Selection Process,” p. 31).
Quality and safety of our ingredients, products and packaging are paramount to our success at Abbott Nutrition, so choosing a good supplier is a critical business decision. Consequently, our supply chain team has identified six steps for choosing the right supplier, as well as several best practices in the industry.ontinue auditing, basing the frequency of the audits on the criticality of the supplier. To determine the frequency, all suppliers should be categorized into a level of risk or importance. This prioritization will help you be smarter and more effective with your resources and place a higher focus on your important, high-risk suppliers, while continuing to monitor second-tier suppliers.
Beyond an established audit program, you should continuously monitor and assess each supplier’s performance. You can track positive or sustained strong performances, as well as negative trends.
3. Gaining Supplier Feedback
Another tool you can utilize with suppliers is a self-assessment questionnaire. The supplier self-assessment can be used to