Understanding Resources

Exercising Due Diligence When Choosing a Supplier The coverage of..

Understanding Resources

Exercising Due Diligence When Choosing a Supplier The coverage of any due diligence process will be affected by the cost of the services for procurement, the value of the services to your business, and the risks of the absence or poor performance of such services. However, no matter the size of your business, there are some basic steps you must follow. Know your needs and preferences. You have to be clear from the start what you are would like to achieve. This will help to pinpoint exactly what you particularly need from your supplier, not only in terms of their service offering but their values and how they work with their customers as well. Studying the Market
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Knowing what you want and need from a supplier, you can draw up a shortlist of prospects through a “Request for Information” document (RFI). This concisely outlines the necessary goods and/or services and asks for information related to the capabilities and competencies of suppliers.
The Ultimate Guide to Services
Investigating Probable Suppliers The checklist below will help you assess your prospective suppliers’ capabilities and fit with your business: Business Identity- Find out who you’re dealing with: are they legit and does the person you are negotiating with have the authority to commit the supplier? Financial Background- A supplier with an operating loss, or considerable loss of revenue over the last few years may have underlying problems. Delivery of Goods/Services – Does the supplier’s proposed method of addressing your requirements jive with your present practices? How do they plan to handle any challenges? Will they be able to deliver the promised services for the price they have quoted you? How do they compare with others on this particular aspect? On this account, how do they compare with the others? Quality – Examine the credentials and/or standards’ accreditations of the supplier . Cost – Compare several quotes from different supplier. But take note that best value for money isn’t automatically equal to the lowest price. Business age – Longevity may increase your confidence but a younger company can be innovative in approach and attitude. Track record – Ask for comments or feedback from other clients (you probably know some). Meet with your prospective supplier – Not only is this a good way to see if you can work together but it also offers you a chance to see their workplace, examine samples of service deliverables or witness demonstrations on performing the services. Risk Assessment and Management Once you have appointed your supplier, have a risk register describing relevant risks and how to manage them. This may be referred to over the course of the relationship. Selecting Data Processors You will probably have to share data with your supplier, but ensure they are completely aware of existing data protection regulations and are going to comply.