7 Criteria For Evaluating Steel Mills
BlogDate: 07-02-2024 by: Nhu Quynh
The purpose of the steel mills assessment is to select the right supplier for the enterprise's requirements. That's important, but many businesses are still wondering what the objective and accurate evaluation criteria are. The following article summarizes the criteria for evaluating steel mills so that you can choose reliable partners.
Reputation of steel mills
When evaluating a steel mills, the reputation of the factory is the first factor and also a decisive factor in deciding whether to cooperate or not. To consider whether the factory is reputable enough, we need to note a few aspects:
- Clear information: Does the factory really exist? Address, contact method, business license or not?
- Transparency in cooperation: Does the factory ensure the supply of raw materials and maintain long-term cooperative relationships with partners?
- Review of legal issues: View legal procedures related to past and current factory contracts; Is the factory's legal compliance guaranteed?
Product quality
This is the most important criterion when any business wants to make a decision about choosing a steel mills. When sourcing products, businesses will proceed to provide criteria for quotes, product quality, materials, durability, aesthetics,... From there, make a detailed assessment and draw the conclusion that the product of this factory is suitable for the needs of the business you are looking for. You should build a form, a tracking sheet in the form of a scale, to comment on all aspects of the quality of goods supplied by the factory.
In addition, it is also necessary to consider the damage rate of the goods. Specifying a specific risk level or criterion after the time of importing goods and conducting inventory, based on that ratio to track the quantity, find out if the cause of damaged goods is due to the transportation process or supplier error.
Production capacity of steel mills
Production capacity is one of the important criteria for evaluating steel mills. The assessment of the production capacity of the factory will clarify the efficiency of the factory's production activities and its ability to meet the needs of the market. A factory with a large production capacity is equivalent to an abundant labor force and modern machinery and equipment. Besides, production capacity also helps to assess the potential of the mill development. The larger the steel mills production capacity, the larger the mill.
Product delivery performance
In the criteria for evaluating steel mills, it is indispensable to evaluate the factory's product performance. Ensuring the performance of the factory's product supply determines the business plan of the enterprise. Therefore, suppliers need to ensure credibility in the time and quantity of products provided. Below are the factors used to evaluate the product supply performance of steel mills:
- Order fulfillment time: The time from the beginning of order fulfillment to when the supplier delivers the goods to your business.
- Reliability of delivery: Ensure the agreed delivery time, sure delivery, the right type of goods, the right quality, and the quantity of goods according to the contract.
- Information: Information is exchanged throughout the steel mills and your business.
- Flexibility: The steel mill's ability to adapt its product supply to changing conditions.
Production technology of steel mills
Currently, steel mills around the world use three main production technologies, including the basic oxygen furnace (BOF), the electric arc furnace (EAF), and the induction furnace (IF). In which BOF technology accounts for the majority, EAF and IF technologies account for a little and very little. This is also an important criterion that businesses need to pay attention to make objective and accurate assessments of steel mills.
The fact that factories use modern production technologies not only brings high-quality products but also contributes to saving energy. Technological improvements and upgrades promise to be outstanding advances in product quality and output.
Product price and payment method
Product prices and payment methods are indispensable criteria in the steel mills evaluation criteria table. This criterion affects the buyer's ability to buy and profit. If there are two suppliers with the same quality and performance of products and services, the one with the cheaper price will bring more profits to the business. Evaluation factors may include:
Competition: The price paid should be comparable to that of other competitors. Enterprises should have quotes from many steel mills for comparison and better evaluation.
Accuracy and stability: The price on the order and on the invoice should only have a small difference. If there is a change in the price, the supplier should notify customers in advance. Prices also need to be stable over time.
Payment transparency: The average time it takes to receive a credit note should be reasonable. The estimated cost should not change significantly from the final invoice. Supplier invoices should be timely and easy to read and understand.
Customer service
Customer services help businesses in cases of problems such as product errors, missing orders, low-quality products,... Therefore, this is a criterion that cannot be ignored when proceeding with the steel mills assessment.
When conducting supplier evaluation, it is necessary to collect opinions on the quality of support, the attitude of the supplier and response time to support requests, the qualifications of the support staff,... Customer service will be evaluated through three timelines: before the transaction, during the transaction, and after the transaction.
Thus, the above article has summarized seven criteria for evaluating steel mills. However, to conduct the assessment according to the above seven criteria, enterprises need to have accurate, transparent, and complete information about the factory. I hope this information is useful for you in choosing a reputable and quality steel mills.
