Supplier Selection
The regional supply management procedure includes a structured approach to selecting products from potential suppliers.
This process vary based on region and the type of products involved, but the general process typically includes the following steps:
Needs Assessment:
Regional distribution chains continuously assess the product needs and preferences of local consumers.
Product Discovery:
The central supply management team is actively selects products that can fulfill the identified needs.
Supplier Assessment:
Before selecting a supplier, central supply management team evaluates potential candidates based on criteria such as:
- Production capability
- Quality control processes
- Scalability
- Cost structure
- Compliance with regulations and standards
Product Evaluation:
Regional units assess the quality, design, packaging, and other relevant attributes. They might also evaluate:
- Product durability
- Warranty and after-sales service
- Marketing and promotional support provided by the supplier
- Retail margins and suggested retail price
Clarification:
Once a supplier and the product selected for regional retail distribution chains, the certain terms should be finalized such as:
- Actual purchase price
- Minimum order quantities
- Payment terms
- Returns and allowances for damaged or unsold goods
- Marketing and promotional commitments
Approval and Access
Approved suppliers may be granted access to our supply management platform (SMP) for further participation in the regional supply chain, subject to the outlined terms and conditions.
Possible Pilot or Test Launch:
Once the product is selected, regional retailers, at their own discretion, can choose to launch it in a limited number of stores or regions based on their individual plans, timing, and preferences, in order to gauge customer response, sales velocity, and potential issues.
This phase helps to make informed decisions about a full-scale rollout.
Onboarding:
The regional distribution chains work with the supplier to set up processes for regular orders, deliveries, and restocks.
This also involves integrating IT system for smooth order processing and inventory management.
Possible Full-Scale Launch:
The product can be rolled out to all targeted stores, promoted (if agreed upon), and monitored for sales performance.
Continuous Review:
Regional retail distribution chains consistently monitor sales data, stock turnover rates, and customers’ feedback.
If a product does not meet expected sales or profit margins, or if there are consistent issues or complaints, regional distribution chains might discontinue the product.
Feedback Loop:
Regional retailers can provide feedback to suppliers on product performance, issues faced, or any suggested improvements.
This feedback can be used for product modifications or packaging changes.
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More information about supplier assessment can be found here.