Which of the following statements best identifies the value of using a supplier rating system?
Which of the following statements best identifies the value of using a supplier rating system?
A supplier rating system provides an objective means for a company to determine outstanding suppliers. By evaluating suppliers based on specific criteria such as quality, delivery performance, and service, a company can distinguish between high-performing and underperforming suppliers. This helps in making informed decisions regarding supplier relationships, potentially leading to better supply chain performance and strategic sourcing.
D. It ensures that all suppliers are using the same quality standards to manufacture products.
The correct answer is A. It's not necessary for ALL suppliers to have the same quality standards. There is no need for a supplier of a commodity material to have the same quality standards as the supplier of a strategically important material. This is related to segmenting of suppliers.