Criteria are attributes that a buying organization values in its arrangements with suppliers. They are:
Time in business- Serving your requirement is the major thing a company looks into. The supplier must be established and ready to provide goods and services to the company’s requirement.
Consistency- Company always wishes to buy goods and services from one supplier. They do not want to change their suppliers in short run. So, they look in their supplier that whether they are going to supply them the product consistently or not.
Ability to supply all the products required or the complete solution- This is particularly necessary when you are looking for a one of a business solution such as a new computer system. You may also be attempting to rationalize the number of vendors you are dealing with or wish to purchase a product line from one vendor only. It would be particularly difficult to obtain good terms if you need to purchase just a small range from another supplier, because your chosen vendor was unable to supply the complete range.
Flexibility- Supplier should be such that who will allow making deduction or increment in the orders. He should be flexible as the company may require number of items at the delivering time than ordering time.
Sustainability- Company should always look for a supplier who is financially stable. The reason behind this is that they do not have to change the supplier again and again to purchase goods.
Prices- It is the most important thing. It is because the cost of production is totally dependable on this thing. If the raw material price is higher than the price of the product will always be high and the consumer is price conscious. If they get a product at a lower price, they will choose them instead of going for the company who is providing the same product at a higher price.
Terms of Payment- Company’s cash flow is also one factor which influences the decision. Terms of payment should be such that it doesn’t affect the cash flow of the company much.
Services- Rude behavior, unprofessionalism is mostly ignored. The supplier should be such that who is cordial, easily available. No one likes hanging on the end of the phone being told by a machine, “your call is important to us”!