A vendor database is an absolute necessity to start the vendor development programmer. This starts with registration of the vendor. Registration of a vendor is taking cognizance of the fact that the vendor is recognized as a preferred or approved supplier to the organisation. However, to do this, a lot of details are collected by questionnaire or visits to suppliers. It is also essential to explain one's vendor development programmer to the vendor since this helps the vendor in understanding the intent and scope of relationship
better.
Some of the aspects and details required to register the vendor are given below :
- Name of the supplier,
- Location of supplier's communicating office,
- Location of supplier's warehouse,
- Location of supplier's factory,
- Past record of the supplier with the company,
- Financial status of the supplier - balance sheets or bank certificates can be used for credit worthiness,
- Plant capacity, growth plans need to be ascertained as satisfactory proof of size and the volume of orders that the vendor can handle,
- Factory layout and expansion plans,
- Delivery records should indicate minimum lead time and delays,
- Supplier's preparedness to accept the buyer's specifications and other contract conditions on warrant and replacements,
- Ability to respond to unusual and emergency requests from buyers and the decision making framework in this regard,
- The technical, financial and production capacity in terms of capability of its personnel,
- Break-even points in the plants manufacturing capacities,
- Effectiveness of the supplier's organisation and management including the ownership status and operational reliability of its machinery,
- The industrial relations of the firm with its unions, its past strikes or other work stoppage or slowdown problems and the ability of the firm to cope with them in' the past,
- Inattentiveness of the company and morale of staff, and
- Testing and inspection facilities.
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