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Are you responsible for purchasing bespoke components and assemblies from UK subcontract manufacturers? If so, you’ll know just how crucial it is to periodically re-evaluate your preferred supplier list to ensure that you have reliable suppliers that meet your quality, cost, lead time, responsiveness and other unique requirements.
Re-evaluating your preferred supplier list can help you identify potential issues, reduce risks, and improve cost efficiency. It can also help you stay competitive and up-to-date with market trends. In this article, I'll guide you through the key considerations for re-evaluating your preferred supplier list and provide tips for conducting a successful re-evaluation. Let's get started!
II. The Benefits of Re-Evaluating Your Preferred Supplier List
Re-evaluating your preferred supplier list can bring many benefits to your organisation. Here are some of the key advantages of conducting regular reviews:
- Identifying potential issues: Re-evaluating your preferred supplier list can help you identify potential issues before they become major problems. For example, if you notice that a supplier's quality has been slipping, you can take action before it affects your production schedule.
- Reducing risks: By regularly re-evaluating your preferred supplier list, you can reduce the risks associated with relying on a single supplier. Diversifying your supply chain can help you minimise the impact of unexpected events like natural disasters or supplier bankruptcies.
- Improving cost efficiency: Regularly reviewing your preferred supplier list can help you identify opportunities for cost savings. For example, you may find that another supplier can provide the same quality components at a lower cost.
- Staying competitive: Re-evaluating your preferred supplier list can help you stay competitive in your industry. By regularly reviewing your supplier network, you can identify trends and innovations that can give you a competitive edge.
At Qimtek, over the years, we've heard lots of stories from the buyers who use us to re-evaluate their PSL and how it has led to improved efficiency and cost savings.
III. Key Considerations for Re-Evaluating Your Preferred Supplier List
When re-evaluating your preferred supplier list, it's important to consider a few key factors. Here are some of the main considerations:
- Quality should always be a top priority when selecting suppliers. When re-evaluating your preferred supplier list, make sure to assess the quality of their components and assemblies. You may also want to consider their quality certifications and any customer feedback or reviews.
- Cost is another important factor to consider when re-evaluating your preferred supplier list. Make sure to review pricing and payment terms with your suppliers to ensure that you're getting the best value for your money.
- Lead time is a critical factor in supply chain management. When re-evaluating your preferred supplier list, make sure to assess their lead times and delivery reliability. Late deliveries can cause delays and disrupt your production schedule, so it's important to choose suppliers who can meet your lead time requirements.
- Responsiveness: Finally, it's important to choose suppliers who are responsive to your needs. When re-evaluating your preferred supplier list, consider their communication and customer service. Do they respond to your inquiries in a timely manner? Do they provide proactive updates on order status?
At Qimtek, we recommend that our registered buyers conduct regular reviews of their PSL to ensure that they're meeting their quality, cost, lead time, and responsiveness requirements. By working with a diverse network of subcontract manufacturers, buyers can maximise their supply chain efficiency and minimise the risks of relying on a single supplier.
IV. Tips for Conducting a Successful Re-Evaluation
Re-evaluating your preferred supplier list can be a daunting task, but there are a few tips that can help make the process smoother and more effective. Here are some tips for conducting a successful re-evaluation:
- Set clear objectives: Before you start the re-evaluation process, make sure to set clear objectives and priorities. What are the most important factors for your organisation? What are your long-term goals for your supply chain? Having clear objectives can help you stay focused and make better decisions.
- Establish a review process: Make sure to establish a clear review process that includes key stakeholders and decision-makers. This can help ensure that everyone is on the same page and that decisions are made in a timely manner.
- Communicate with suppliers: Communication is key when it comes to re-evaluating your preferred supplier list. Make sure to communicate with your suppliers throughout the process and keep them informed of any changes or decisions.
- Utilise technology: Technology can be a powerful tool for managing your supplier network. Consider using software or tools that can help you track supplier performance, manage contracts and agreements, and automate processes.
At Qimtek, we offer a range of tools and resources to help our buyers manage their supplier network and streamline their procurement processes. Our intuitive online platform allows you to quickly and easily search for suppliers, request quotes, and manage orders. We also offer a range of supplier performance metrics and tools that can help you evaluate supplier performance and identify opportunities for improvement.
V. The Role of Collaboration in Re-Evaluating Your Preferred Supplier List
Collaboration is a key factor in building a resilient and efficient supply chain. When it comes to re-evaluating your preferred supplier list, collaboration can help you build stronger relationships with your suppliers and identify opportunities for improvement. Here are a few ways to promote collaboration in the re-evaluation process:
- Involve key stakeholders: Make sure to involve key stakeholders in the re-evaluation process, including representatives from procurement, engineering, and production. This can help ensure that everyone's needs and priorities are taken into account.
- Engage with suppliers: Engage with your suppliers throughout the re-evaluation process to gather their input and feedback. This can help you identify potential issues and work together to find solutions.
- Build strong relationships: Building strong relationships with your suppliers can help you build trust and improve communication. Regularly checking in with your suppliers and showing appreciation for their work can go a long way in building a collaborative partnership.
At Qimtek, we believe that collaboration is key to building a successful supply chain. Our platform allows buyers to communicate directly with suppliers and build strong relationships based on trust and mutual respect. We also offer a range of resources and online features to help buyers and suppliers work together more effectively.
VI. Conclusion: Applying These Concepts in Practice
Re-evaluating your preferred supplier list is a critical component of supply chain management. By regularly reviewing your supplier network, you can identify potential issues, reduce risks, and improve cost efficiency. Remember to consider quality, cost, lead time, and responsiveness when evaluating your suppliers, and utilise technology and collaboration to streamline your procurement processes.
Can we help you to evaluate your PSL?
At Qimtek, having already helped over 10,000 buyers find new suppliers for more than 320 million parts, we understand the challenges of evaluating and managing a preferred supplier list. That's why we offer a free sourcing platform that allows buyers to upload a whole set of drawings for future production work. Our platform then matches these drawings with relevant suppliers who upload their quotes online. This enables buyers to access all documents in one place, saving them a significant amount of time and effort. One recent buyer uploaded their entire 18-month schedule for prices and received 17 quotes from relevant suppliers. They were then able to evaluate each supplier's offering, and decided to add 9 of them to their preferred supplier list. By utilising Qimtek's free sourcing platform, this buyer was able to evaluate potential suppliers efficiently and effectively, ultimately saving them both time and money.