One of the reasons that I like working in quality is that every day is different. Operations turns on and runs machines. Warehouse moves product. Accountants check for transactions. Purchasing shops for the best deals and deliveries. Customer Service handles customers. Maintenance fixes things.

But Quality?

"We work with Operations to assure consistency, track costs of operations, and track the cost of good and poor quality. We work with Maintenance to create a program that prevents breakdowns, and we follow Warehouse so we can track every movement of every ingredient and product".

As a quality professional, I believe we want to be a partner with Suppliers. I’ve had the pleasure of working with good and bad suppliers in my career, and the good ones could have been quality practitioners. The bad vendors are not bad, but it's how as a buyer we intend to make use of best practices.

As the fashion industry is characterized by several factors, namely a short lifecycle, high volatility, low predictability, and high impulse purchase. We as Retailers must have 2 portfolios of Vendors

Type 1 vendors are characterized by long lead times, lower unit costs, and less flexibility
Type 2 vendors offer short lead times, high unit costs, and more flexibility
So the question is
Do we evaluate our Supplier?
For Every Purchasing are we defining the Specifications?

Companies purchase a wide range of raw materials, components, semi-finished goods, or final products. They are all necessary to conduct a business activity, mainly for manufacturing or service companies. The selection of a desirable supplier plays a key role in the whole procurement process. As it determines the future success of the company, it ought to be well-thought-of suppliers selection process, many methods can be applied, including multiple criteria evaluation methodology.

Today’s world includes many additional elements that have to be included. Purchasing and Quality work together to define what is to be purchased—at what specification. Without the specification for each ingredient, package, or component, Operations cannot achieve product consistency.

Supplier selection decisions are complicated by the fact that it is influenced by various criteria and conditions in the decision-making process and each company has its own requirements.

Further, each Supplier selection and performance or evaluation criteria must be divided. Supplier selection decision-making is usually long and complicated. Let me focus on a few 

 The cost factor is one of the most important elements that influence strongly the face of the world of garment production’s flow nowadays as the purpose of sourcing is to obtain the maximum benefits for the company by cheaper product price. The following criteria must be assessed.

  • Supplier selling price
  • Internal cost
  • Ordering and invoicing

Reliability : The reliability factor needs to be judged under external and internal factors in which trust and warranty policies play a vital role. The supplier will have to deal with the prevailing conditions

  • Feeling of trust 
  • Political situation 
  • Price fluctuation 
  • Warranty policies

Quality : There is no doubt that quality is one of the most fundamental factors to evaluate when choosing a new supplier. A poor quality product can have a major impact on the company’s downstream sector as it causes a higher rate of returns by unsatisfied customers, the cost of inventory, profit margins, and the business’s reputation, etc. Suppliers must be assessed with 

  • Continuous improvement program
  • Customer satisfaction
  • Certifications 
  • % of on-time shipment - Rejections

Flexibility factor: In a supply chain, the supplier's flexibility is considered a tool to cope with the environmental and as well as business changes 

  • Capacity 
  • Inventory availability 
  • Information sharing
  • Negotiability 

By assessing your suppliers with quantitative measures, you’ll see what improvement can be done on your suppliers’ side, and address them accordingly to improve the overall supply chain performance.

Share your thoughts and feedback on your supplier evaluations.

RELATED TOPICS:#Apparel,Ajay Ravuri

With 16 years of vast experience in export & domestic apparel manufacturing, Ajay currently heads the quality division at Arvind Fashions Limited. His motto of “learning” has helped him in improving throughout his career. He has a keen interest in Lean manufacturing, Six sigma concepts & KPI management in Quality & manufacturing excellence.

9 Comments

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Nice article and very helpful

Ajay ji yes it is really tuf task to evalauate the new as well as current vendors. Now a days sourcing is more concerned with the pricing factor. so, it is very important to sync with price and quality. I think if we can run CQI and owner has positive mind set then only we can achieve the desired quality levels.. Thanks for sharing..

Good article, all points are valued and all are well explained..

Quality Cost and delivery is in today’s world amongst suppliers has become a given. Supplier and buyer Relashionship needs to go through a huge change in the Indian and brand based world concept in supply chain management of the future. With the on set of e retail and its meteoric rise through the pandemic it’s a foregone conclusion that traditional off line trade is moving towards the ice age. The pace of change is so quick that e retail will obsolete itself and disrupt itself. So the future for defining a vendor will be a seamless vendor to a omni channel partner who can design and deliver and sell in a batch size of one. Yes it’s difficult to visualise but this is what the world is moving towards. The fashion will be instant. The minute you see a celebrity in a certain outfit the target market must have access to it in the shops.The shops will be a experience center. The trial room virtual Fast sustainable fasion delivered at lights speed where it’s demanded and replaced in qty of one. Suppliers and brands must move stock seamlessly from supplier production line to consumer via omni channel. This is the supplier of the future we need to dream to be. Design to delivery then price will not be central as the cost of supply chain and stock removed will enable the supplier to get a better price and the brand and supplier will become partners in Risk share over a supplier buyer Relashionship.

Well said Mr.Ajay and totally agreed that vendors should be characterized as type 1 & 2 on the basis of lead times. And evaluation of all suppliers is must because it effects the product quality drastically. The criterias for supplier selection and decision making are well explained. Overall is a good read.

Great one to learn about supplier Evaluation Sir

It's Good article sir,

Brand value, purchase cost, compliance, vendors, Quality, Productivity & customers are complex strategies linked into the business. Sir, It's a good article well explained on the supplier evaluation criterias. Great learning ???

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