Wondering whether the supplier size guidelines mentioned in “Supplier Size: It Matters” are absolute rules for selecting (or rejecting) a supplier? Keep in mind that these are ONLY guidelines. There will absolutely, positively be exceptions.
For example, NLPA has a supplier awards program in place. In our most recent mid-year supplier evaluation, the leading candidate for our 2005 Supplier of the Year Award was a huge company. NLPA’s business comprises less than 1% of its annual sales. Performance – irrespective of relative size – is what counts.
Supplier size is just one of many criteria that you should consider when selecting a supplier. In many cases, you will find that supplier stability and attentiveness to your needs are highly correlated with the guidelines in the above-mentioned purchasing article.
What percentages are you finding to be the thresholds?
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- Supplier Size Guidelines: Set In Stone?
- Advanced Supply Management Tactics Applied: Customer-Driven Design, Master Data & Category Planning
- Managing Supplier Performance
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