Criteria for Choosing Suppliers as Collaborators Research

Criteria for Choosing Suppliers as Collaborators
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Criteria for Choosing Suppliers as Collaborators
Introduction
Most organizations are increasingly outsourcing most of the services and products from various suppliers. The suppliers should be efficient and effective in meeting the demands of the company, which translates into a successful working relationship. In the current business environment, outsourcing means less cost, translating to profitability and efficiency.
Criteria for Choosing Suppliers
There are so many factors to consider when choosing a supplier or a group of suppliers to provide goods and services. These include cost and quality, reliability and stability.
Cost and Quality. In a new business, all avenues must be considered in making sure that the cost of providing or sourcing of certain goods is affordable, and would not deplete the resources planned within a specific time. The suppliers should be competitively priced, providing an endearing option. Despite being cheap, the quality of the service or product should be counterchecked to ensure that both quality and cost requirements are achieved. Cheap products can result in costly ventures, plunging the new business development into a risky start. Poor quality of goods goes a long way in damaging the reputation and future prospects of the company, in addition, to destroying the customer base (Wold and Kearney, 2011).
Reliability. The suppliers must be reliable to deliver the right products or services on the agreed timeline. The reliability of the supplier translates to the reliability of the business (Watters, 2010...