The Impact of Criteria on Business Activities
The criteria selected influences the environment through which the business operates. The chosen criteria have the significant impact on the business activities and move as well. Therefore, the criterion of selecting the vendor that the company would be working with is very crucial. It is essential because it influences the business move and development as well. By developing criteria to select the type of vendor that the business would be working with, it is going to improve the business activities and its profit as well (Mathiyazhagan et al., 2018). There would be a lot of positive impacts when there is a developed criterion for selection of the vendors. This paper analyses selection criteria needed specific criteria with recommendations and why each element in the list is required.
The Importance of Criteria in Business Organization
A criterion is needed in any business organization to manage its activities. The business activities run smoothly because of the business criteria. That is when the business has its criteria for selecting vendors in place. The criterion is needed too to maximize the business profits. The business profit is maximized when there is competitive pricing. The competitive pricing is obtained when there is a criterion for selecting vendors, and that is why an approach is needed. The business criterion is required to have its products delivered on time. When the supply is on time, there is the smooth flow of the business activities (Abdel-Basset et al. 2018). The criterion is also needed to have the competitive business pricing as well its specifications. To have the proper procedures of vendors and policies, there should be criteria.
The Recommended Criterion for Vendor Selection
The recommended criterion has the following elements: specifications, competitive pricing, capacity, ethics, education and pricing, on-time delivery and cost control as well. Each of these elements has a significant role and direction through which the business operates. These elements have reasons too, and that is why they are needed.
Specification and Competitive Pricing
It is one of the elements of the criteria that is selected, and this is because it allows the business to select vendors with only the specific type of the products they are in need of. It is an important element because the business is only going to focus on the selected product needed at that specific time. It is important as there are businesses that require different products at different times of use. The specification as an element would determine which product is needed and in what time (et al. 2018). On the other hand, we have competitive pricing. The competitive pricing element would help the business figure out the right amount to deal with in a given product. It is important because the business can weight and notice the required price for the provided product. The competitive pricing would help reduce the cases of the price discrimination in the business market. With fewer cases of the price discrimination, there would be immense business profit hence a fair competition in the market.
Capacity, Ethics and On-time Delivery
Capacity is an element in the criteria that would help the business to know the right amount required by the company and what it can hold. Ethics is crucial; this would greatly benefit the business to make the proper selection. Ethics would enable the business to identify those vendors that practice price discrimination in a negative way that is immoral to the community. On-time delivery would allow the company to run its activities smoothly without any interferences of delay.
References
Mathiyazhagan, K., Sudhakar, S., " Bhalotia, A. (2018). Modeling the criteria for selection of suppliers towards green aspect: a case in Indian automobile industry. OPSEARCH, 55(1), 65-84.
Abdel-Basset, M., Manogaran, G., Gamal, A., " Smarandache, F. (2018). A hybrid approach of neutrosophic sets and DEMATEL method for developing supplier selection criteria. Design Automation for Embedded Systems, 1-22.
Sona, P., Johnson, T., " Vijayalakshmi, C. (2018). Design of a multi criteria decision model-fuzzy analytical hierarchy approach. International Journal of Engineering " Technology, 7(1.1), 116-120.
