Quick guide for you to classify suppliers

By justchinait
January 12, 2021

Supplier classification means that in the supply market, purchasing companies divide suppliers into several groups based on the number of purchased items, the importance of purchased products, and the importance and trust of suppliers to the purchaser. Supplier classification is the first link in supplier management. Only on the basis of supplier segmentation, can companies implement different supplier relationship strategies based on the different situations of segmented suppliers. Companies can classify suppliers in the following ways:

According to the supplier’s importance to the company and your company’s importance to the supplier’s analysis, suppliers can be divided into four categories.

01 partner supplier

The company believes that the supplier has strong product development capabilities and this procurement business is very important to the company, and the supplier also believes that the company’s procurement business is very important to them, so such a supplier is a”partner supplier”.

02 Priority Supplier

Suppliers believe that the company’s procurement business is very important to them, but this business is not very important to the company. Such a supplier is undoubtedly beneficial to the company and is the company’s”priority supplier”.

03 Key supplier

Suppliers believe that the company’s procurement business is not important to them, but the procurement business is very important to the company. Such suppliers are”key suppliers” who need to pay attention to improvement.

04 Commercial supplier

The procurement business is not very important to the supplier and the company, and the corresponding suppliers can be easily selected and replaced, so the suppliers corresponding to these procurement businesses are ordinary”commercial suppliers”.

A good supplier should have the following main bodies:

1.Outstanding business leaders

Only with outstanding leaders can an enterprise develop in a healthy and stable manner.

2.High-quality management cadres

Only with high-quality and capable management cadres can the enterprise’s management be efficient and full of vitality.

3.Stable employee group

The stability of the company’s employees can ensure the stability of product quality. If the employee group is too mobile, the product quality will be greatly affected.

4.Good machinery and equipment

Good machinery and equipment can guarantee the quality of its products.

5.Good technology

An enterprise must not only have high-quality management cadres and good management but also experienced and innovative technical personnel. Only by continuous improvement and innovation of technology can product quality be more guaranteed and material costs continue to drop.

6. Good management system

the science of incentive mechanism, the unblocked management channels, and the soundness of various management systems can give full play to people’s enthusiasm. So as to ensure that its suppliers as a whole are excellent, its product quality is high-quality, and its service is first-class.

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