Cross-border e-commerce supplier evaluation: production and trade supplier identification strategies

In the cross-border e-commerce industry, supplier selection and evaluation are crucial. In order to ensure the stability of the supply chain and the quality of products, cross-border e-commerce companies need to establish a complete supplier management system and regularly evaluate suppliers.

Supplier management system

Enterprises should establish a supplier management system, strengthen communication with suppliers through meetings and other forms, and tap suppliers’ potential and room for improvement. In addition, supplier performance management and contractual relationship management also need to be improved.

Procurement process design and implementation

In order to improve work efficiency and mutual satisfaction, companies should also design and implement reasonable procurement processes. This includes but is not limited to supplier evaluation, contract signing, order processing, delivery acceptance, etc.

Quantitative and qualitative evaluation indicators

Supplier evaluation indicators can be divided into two categories: quantitative and qualitative:

Quantitative indicators

• Price: Check whether the price level offered by the supplier is competitive. The ratio of the supplier’s quote to the market average or lowest price is usually compared.
• Quality: Including quality qualification rate, average qualification rate, rejection rate and inspection exemption rate, etc. These indicators reflect the quality stability of the products provided by the supplier.
• Delivery time: Measures the supplier’s ability to deliver goods on time. Common evaluation indicators include on-time delivery rate and delivery cycle.

Qualitative indicators

• Service level: involves communication methods, feedback speed, cooperative attitude and other aspects.

Production supplier identification

For production suppliers, the identification process is more complicated:

1. Supplier development: Collect information from potential suppliers through multiple channels and request samples for quality inspection.
2. Information registration and scoring: Register the basic information of suppliers and perform preliminary scoring on them.
3. Production and supply capacity assessment: Mainly examines financial status, production capacity, R&D capabilities and past sales performance.
4. Quality management capability assessment: Focus on product quality management system, raw material procurement process management, production process management, human resources management and environmental protection system.
5. After-sales service quality evaluation: Consider customer satisfaction, on-site service records, and response time.
6. Breach of Contract Assessment: Points will be deducted for quality problems, delayed delivery and other issues that existed in the previous year.

Trading supplier identification

Although trading suppliers do not have production capabilities, they also occupy an important position in the cross-border e-commerce field with their market acumen and extensive product lines. For such suppliers, the superior and inferior solution distance method (TOPSIS) can be used to establish an evaluation model:

1. Establish an evaluation model: Set 8 first-level indicators, namely product quality, product price, product delivery, supplier service, cooperation ability, agility, corporate reputation and human resources.
2. Comprehensive score: Calculate the total score based on the weight of each indicator. The higher the score, the higher the quality of the supplier.

Through the above methods, cross-border e-commerce companies can evaluate and select suppliers more scientifically, thereby improving overall operational efficiency and competitiveness.