5.2 Supplier Evaluation.
Actually Sin Thai Guan Company did not have any proper system or method in evaluating their suppliers. They just observe and evaluate the performance of their suppliers from the time they place the orders until the delivery process. In term of evaluating the suppliers, Sin Thai Guan Company will set a month of testing period for new supplier, which means the company order the raw materials from new supplier for only a month in order to evaluate the perfomance of this supplier. If the company satisfiied with the performance, the company will continue the relationship with the supplier for longer period.
Sin Thai Guan Company evaluates their suppliers based on few criteria which are:
i. Quality
For Sin Thai Guan Company, …show more content…
Sometimes, the company received damaged materials and supplier did not delivered quantity of materials as promised. The reason of the problem happened is Sin Thai Guan Company does not take reliability of supplier as criteria of selecting and evaluating supplier. Actually, the criteria in existing supplier evaluating method has focused on the quality of materials, the service of the supplier and total supply chain costs. But, the company did not take this important criteria, which is the reliability of the supplier into supplier evaluation method as long as the good quality materials delivered on …show more content…
Take reliability into criteria of supplier selection and evaluation
To avoid extra inventory and rehandling cost, Sin Thai Guan Company should select the supplier who offers after-sale services, especially accept return of damaged materials. In case Sin Thai Guan Company received damaged or inaccurate materials, the company can return and replace with the new one. Furthermore, Sin Thai Guan Company should always check their materials once they receive it from suppliers to make sure they receive the accurate materials and the materials are in good condition. This is the way to reduce the occurrence of unreliability.
ii. Dual source supply
Dominick (2007) defined dual source is to use two preferred suppliers to provide the same product or service. For example, Sin Thai Guan Company can use two supplier to provide nuts. In case the supplier having problem on production or transportation, another supplier can be a backup supplier. It is less risk with using dual source when comparing with single source which to only use one preferred supplier (Dominick, 2007). Besides, dual source can also reduce dependency on one supplier so that Sin Thai Guan Company can stop cooperation with the supplier if the supplier fails to perform well. As a result, Sin Thai Guan Company able to maintain quality levels of the company’s product and
Actually Sin Thai Guan Company did not have any proper system or method in evaluating their suppliers. They just observe and evaluate the performance of their suppliers from the time they place the orders until the delivery process. In term of evaluating the suppliers, Sin Thai Guan Company will set a month of testing period for new supplier, which means the company order the raw materials from new supplier for only a month in order to evaluate the perfomance of this supplier. If the company satisfiied with the performance, the company will continue the relationship with the supplier for longer period.
Sin Thai Guan Company evaluates their suppliers based on few criteria which are:
i. Quality
For Sin Thai Guan Company, …show more content…
Sometimes, the company received damaged materials and supplier did not delivered quantity of materials as promised. The reason of the problem happened is Sin Thai Guan Company does not take reliability of supplier as criteria of selecting and evaluating supplier. Actually, the criteria in existing supplier evaluating method has focused on the quality of materials, the service of the supplier and total supply chain costs. But, the company did not take this important criteria, which is the reliability of the supplier into supplier evaluation method as long as the good quality materials delivered on …show more content…
Take reliability into criteria of supplier selection and evaluation
To avoid extra inventory and rehandling cost, Sin Thai Guan Company should select the supplier who offers after-sale services, especially accept return of damaged materials. In case Sin Thai Guan Company received damaged or inaccurate materials, the company can return and replace with the new one. Furthermore, Sin Thai Guan Company should always check their materials once they receive it from suppliers to make sure they receive the accurate materials and the materials are in good condition. This is the way to reduce the occurrence of unreliability.
ii. Dual source supply
Dominick (2007) defined dual source is to use two preferred suppliers to provide the same product or service. For example, Sin Thai Guan Company can use two supplier to provide nuts. In case the supplier having problem on production or transportation, another supplier can be a backup supplier. It is less risk with using dual source when comparing with single source which to only use one preferred supplier (Dominick, 2007). Besides, dual source can also reduce dependency on one supplier so that Sin Thai Guan Company can stop cooperation with the supplier if the supplier fails to perform well. As a result, Sin Thai Guan Company able to maintain quality levels of the company’s product and