What to Consider When Choosing Suppliers

What is the fill rate, and why is it significant?Why is it important to explore a supplier's ethical practices?

Understanding a supplier's ethical practices ensures that they align with your company's values and social responsibilities. It also helps mitigate risks related to reputation and compliance with legal standards.The fill rate indicates the percentage of customer orders that are fulfilled completely and on time, making it a critical metric for assessing the effectiveness of order fulfilment.

What should I look for in a supplier's sustainability practices?How does cycle time impact supply chain performance?

Look for policies that demonstrate a commitment to environmentally friendly practices, such as waste reduction, energy efficiency, and responsible sourcing. Certifications from recognised sustainability organisations can also be a good indicator.Cycle time measures the duration of processes in the supply chain, and shorter cycle times typically correlate with faster delivery and increased customer satisfaction.

What are the key elements to review in contract terms with a supplier?Can these metrics be used in conjunction with one another?

Key elements include payment terms, delivery schedules, quality standards, and obligations. It's also crucial to understand exit strategies, such as termination clauses and penalties, to ensure you can navigate any future challenges smoothly.Yes, these metrics can be used in conjunction to provide a comprehensive overview of logistics performance, helping to identify areas for improvement and optimisation.

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