What factors contribute while selecting a supplier for manufacturing industry?

Zeeshan, 

The most important factors to determine a supplier are not factors that you can set yourself by yourself. It is a collaborative effort. As a Procurement Manager, you must allow your internal customers to discuss what is important for them (factors) with you and then together agreed on the most important factors. Let me explain it in details: 

The first step when looking for a supplier for a particular part or machinery is to ask the internal user what are the most important qualities that he is looking for:

• Is it quality of craftsmanship? 
• Is it high quality/specification in the materials?
• Is price/cost the most important factor?
• Do materials must come from a particular region?  
• Must supplier be near to you?
• Should the supplier speak your language? Etc, etc, etc…..

Any and all questions are important, you must then sit down with your internal customer and prioritize all possibilities / factors. Once this is completed, you will have a picture of what you suppose to be looking for…. And you can select your supplier based on these guidelines or criteria.

So, in other words, the first question must be related to “what our company wants/needs” and then we can ask questions to suppliers to verify they “fit” in our picture of the perfect “material/supplier”.

This means that factors/criteria to select suppliers will be different each time, and will depend on the needs of your company.

I hope this makes sense for you. If you need further clarification, just drop me a line. 

All the best, 

Price

Quality

Delivery Time

continuity

- Capacity

- Quality of product .

- Pricing

- Location

Your technical & commercial requirements for the project or for the product to manufacture or develope.