I. Desk research:
This is where an analysis of the supplier’s document is done. The documents include:
Balance sheet, profit and loss account, organization chart etc. This analysis is done by use of
statistical tools and ratio analysis. This enables the buyer to make an informed judgment on the potential of the supplier to be.
II. Field research / Capacity survey:
- Effectiveness of production systems.
- Quality assurance systems
- Cost control systems
- Appropriateness of the equipment
- Attitudes and stability of management.
- Competence of technical staff
- Morale of workforce which indicates quality of service expected.
- Employee relations – in accordance of strikes, communication between managers and
subordinates, past major customers and reputation of the organization
- How the company handles environmental and human rights issues.
Titany answered the question on November 25, 2021 at 05:44
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