Evaluation of Supplier

The total quality management system at Landoll Corporation is based on the requirements from our customers for prompt delivery of quality product.

Evaluation of suppliers is necessary to provide supervision over suppliers doing business with Landoll Corporation. The purchasing and quality department at Landoll Corporation evaluates suppliers annually. The evaluation criteria are:

• Quality of purchase material

  Comparisons are made on the ratio of product received verses nonconforming product both in quantity and cost.

• Accuracy of deliveries

  On time and accuracy in quantity of delivered are evaluated.

• Technical assistance

  Suppliers are evaluated on their level of technical support for the product supplied to Landoll Corporation.

• Supplier's attitude

  Suppliers are evaluated on their attitude, initiative, responsiveness, attention to detail, and communication performance.

• Competitive pricing

The supplier's ability to control and reduce cost of product is evaluated throughout the year. Though this is not the only indication of a good supplier it is a major evaluation point for Landoll Corporation.

In accordance with the evaluation, suppliers are classified into the following classes:

1. Partners
2. Key Suppliers
3. Approved Suppliers
4. Conditional Suppliers

Whenever possible, suppliers that are classified as Partners and Key Suppliers of Landoll Corporation become involved as far upstream as possible in the design phase of new products. They will be the first to have an opportunity to widen their business partnership with Landoll Corporation. When purchasing from several sources a favorable evaluation will significantly affect a supplier's share of business with Landoll Corporation.