Supplier Evaluation

Reasons for reviewing existing Suppliers

Regularly reviewing and evaluating the performance of existing suppliers is extremely important in the Goods-Not-for-Resale (GNFR) space of retail.

Supplier Evaluation

There are several reasons why regular supplier performance reviews are important:

Identifying areas for improvement

Regular reviews allow a retail business to identify areas where suppliers may not be meeting expectations or where improvements can be made. This could include issues such as delivery performance, quality of goods or services, or cost.

Negotiating better prices

By regularly reviewing supplier performance, a retail business can negotiate better prices with suppliers that have a proven track record of meeting or exceeding expectations.

Identifying high-performing suppliers

Regular reviews also allow a retail business to identify high-performing suppliers that may be able to provide additional goods or services. This can help to diversify the supply chain and reduce risk.

Compliance

Regular reviews also allow a retail business to ensure that suppliers are in compliance with relevant laws and regulations.

Maintaining supplier relationships

Regular reviews help to maintain good relationships with suppliers. It is an opportunity to communicate any issues and find ways to work together to resolve them.

Improving supplier performance

Regular reviews allow a retail business to track supplier performance over time and use the data to identify areas for improvement and drive improvements in supplier performance.

Regularly reviewing suppliers leads to a more profitable supply chain

In summary, regular reviews of existing supplier performance in the GNFR space of retail are critical to maintaining a healthy supply chain. By regularly reviewing and evaluating supplier performance, a retail business can identify areas for improvement, negotiate better prices, identify high-performing suppliers, ensure compliance, maintain supplier relationships and improve supplier performance, ultimately leading to a more efficient and profitable supply chain.


About Lumatrak

Lumatrak’s PULSE software offers you tools that will help make sense of the chaos by connecting the processes, systems and communications supporting your purchases from the time of purchase to final delivery to your site.