Describe the steps in vendor selection.
Steps in Vendor Selection
P&G emphasize in the supply chain management to select the best vendors for their distribution networks and also sustain their vendors to make business more profitable. For the vendor selection P&G ensure that vendor must know about:
- The core business of P&G because if vendor does not know about, then they are not able to make profitable sales.
- The Legal Compliance of country.
- The human rights law and also they must respect human rights. (P&G Staff)
P&G select the vendor through the system and software is used to select the best vendor. For this purpose, the analysis is made through the system in which different vendors enter and register themselves and system critically evaluates and shortlist the best vendors out of all. After that, the further selection is based on personal judgment and at the end, the best vendor is selected. (Aziza, 2011)
After the supplier selection, P&G ensure that they must make their relations strong with their vendors and for it, they keep in contact with their vendors and also treat their vendors with good ethics and rewards and gifts are given to them when they meet the desired goals. P&G thus make their profits more profitable when their vendors are best and deliver their products to the customers and meet their demands as well. (P&G Staff)