Order placing via appropriate channels (i.e. authorised purchase order)
- Receiving including adjustments for damages, short or over-shipping, incorrect costs
- Monitoring supplier performance
- Lead-time to supply
- Quantity supplied
- Quality of supply
- Data accuracy on products prices.
In selecting a supplier, a number of factors must be investigated:
- Credit terms
- Shipping costs
Look at the whole transaction cost of dealing with a supplier (not just the cheapest price).