Carter 10Cs of Supplier Evaluation

Carter 10Cs of supplier evaluation model was developed by Ray Carter in attempt to provide a comprehensive framework that will help businesses make the right decisions when it comes to choosing its suppliers. Carter had first put forward the 7Cs of supplier evaluation in 1995 but later added three additional Cs to the model.

According to Carter these are the 10Cs that should be used to evaluate supplier performance:

1. Competency

  • How competent is the supplier? What are its main capabilities?
  • How happy are the supplier’s current customers? Have they encountered any problems? If yes, could they apply to your business as well?

2. Capacity

  • Does the supplier have enough capacity to satisfy your requirements?
  • Could the supplier respond to an increased demand or an emergency request?
  • If in the manufacturing industry, is the factory working in full capacity?

3. Commitment

  • Is the supplier committed to providing exceptional quality?
  • What is the plan of action in case something goes wrong?
  • Is the supplier customer focused? Does he pay attention to your requests, needs and wants?

4. Control

  • How much control does the supplier have on the procedures and policies? Is he doing everything in-house or is he outsourcing some processes?
  • Does the supplier rely on scarce resources that are out of the supplier’s control?

5. Cash

  • Where is the supplier standing in terms of financial performance?
  • Does the supplier have enough cash flowing into the business?
  • Is he likely to be severely influenced by ups and downs in the economy?

6. Cost

  • What is the cost of the product or service you are looking for?
  • How does this cost compare to similar competing products or services in the industry?

7. Consistency

  • Is the supplier committed to providing consistent high quality service? Are there any quality standards that need to be met before a product or service can be sold?
  • How is the supplier’s long-term relationship with other clients?

8. Culture

  • What is the supplier’s business culture? What are its core values, aspirations, mission and vision?
  • How does the supplier’s culture compare to yours? Can you find any similarities? What about any major differences?
  • If you can see major differences in your business cultures, assess the importance of those cultural distances. Is the supplier willing to go the extra mile to meet your requirements and standards?

9. Clean

  • What role does sustainability and green management play in your supplier’s business?
  • Does the supplier put increasing emphasis on adhering to environmental laws and regulation, as well as to societal issues such as diversity and inclusion?
  • In general, is the supplier conducting business ethically? How can he prove that?

10. Communication

  • What are the proposed communication approaches? Who is the contact person?
  • Examine the organization’s flowchart? Is it easy enough to reach someone senior in case you need to?
  • How is their response time? Are they quick to respond to your messages and requests?
  • Will you able to reach the supplier in the case of emergency, even during non-working hours?
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