Hi AC ,
there is three things :
- Risk assessment .
- Performance evaluation
- Audit cycle.
for risk assessment , it depends on your organization size , business type , ... generally it is around the below titles ( each organization select its own )
- Capacity (Does the organization have the capacity to deliver the order)
- Competency (Is the organization, its people or its process competent)
- Consistency (Does the organization produce a consistent output)
- Control of process (Can the organization control its process and offer flexibility)
- Commitment to Quality (Does the organization effectively monitor and manage quality)
- Cash (Has the organization got a strong enough financial base)
- Cost (Is the product or service offered at a competitive price)
- Culture (Are the supplier and buyer cultures compatible)
- Clean (is the organization ethical, funded legitimately, doesn't engage Child labor, etc)
- Communication efficiency (Does the organisation have support technology of information integration)to support collaboration and co-ordination in the supply chain.
Performance Evaluation :
you can create you own way to set the KPI's for your supplier that satisfies you business needs .
beside what you used you can add :
- Delivered quantity accuracy vs. the PO (%)( number of missed deliveries *100 / total number of deliveries ).
- On time deliver vs PO (%) ( number of missed deliveries * 100 / total number of deliveries ).
- Response to complaints / defects ( rate code be used.
- FTQ ( consignment accepted without re-sampling or re-analysis. and so on ....
For audit Cycle :
most of organizations after the finalizing the risk assessment and financial calculations , they sign off an agreement then share their audit guideline or checklist and set an audit day with the supplier then the supplier , or perform a GAP assessment before the audit , after the audit the action plan shared to be agreed and implemented , if supplier passes the audit it means that it is approved .
BR,
Ehab