You might be wondering whether the supplier size guidelines mentioned in “Supplier Size: It Matters” are absolute rules for selecting (or rejecting) a supplier.
Please keep in mind that these are ONLY guidelines. There will absolutely, positively be exceptions.
For example, Next Level Purchasing has a supplier awards program in place. In our most recent mid-year supplier evaluation, the leading candidate for our 2005 Supplier of the Year Award was a huge company. Next Level Purchasing’s business comprises less than 1% of their annual sales. But, their performance – irrespective of our relative size – is what makes them special and worthy of an award.
So, supplier size is just one of many criteria that you should consider when selecting a supplier.
However, in a large number of cases, you will find that supplier stability and attentiveness to your needs are highly correlated with the guidelines in the above mentioned purchasing article.
What percentages are you finding to be the thresholds? Please share your experiences by clicking on the Comments link below.
Thanks for reading!