Using the 10 c’s of supplier selection
Filed Under Blog
As all supply chain professionals know, selecting the right supplier includes much more than a focus purely on cost. If your actively involved in supplier selection you’ll know it can be an exhaustive process. There can be a wide range of variables to consider that can make the process complex and time-consuming.
One element to consider is a standard selection framework for selecting suppliers. Standard criteria can help level the playing field whilst also giving you a standardized procedure removing some of the guesswork from the process. But how should you evaluate your potential suppliers.
Carter’s10 C’s are an all inclusive means of making sure that a thorough method is adopted in regards to the supplier evaluation and that it is fair for all potential entrants. Carter’s 10 C’s method of evaluating suppliers has undergone various enhancements (from its original incarnation of the 7 c’s) and represents an ideal star point for those involved in recruiting or evaluating suppliers. While your criteria may be subtly different – developing a standardized set of requirements will help simplify the process and remove subjectivity.
So what to consider? Carters 10 Cs can be summarized as:
1. Competency – Does your supplier have the skills to deliver the materials you require?
2. Capacity –Does the supplier have an adequate “engine room” to produce your goods. Capacity can include equipment, human resources and materials. Can your supplier flex their capacity in line with your requirements?
3. Commitment –Quality is a key requirement for any business – does your supplier have the commitment to maintain suitable quality performance?
4. Control – Is your supplier in control of their policies and procedures? Can it ensure that its performance can be consistent.
5. Cash –Does your supplier have adequate financial standing?
6. Cost – What is the cost of products from the supplier.
7. Consistency –Does the supplier guarantee a consistent product time and time again?
8. Culture – Does the supplier share the same cultural values as your organization. Does it make sense that your supplier shares similar values and attitudes to avoid strains in the future relationship?.
9. Clean – Does your supplier have an appropriate sustainability policy?
10. Communication – What tools will you utilize to communicate with your supplier. Another key point is who will communicate with who? For example consider how you will manage problem resolution and issue escalation.
So that’s Carters 10c’s – how do you evaluate and select your suppliers?