What is the Suppliers financial condition?
(Note: In an OEM Supplier – Purchaser relationship that typically lasts for several years or more, a secure financial position within each party is crucial to ensure that the relationship remains functional. If no secure financial position exists, then the Purchaser puts itself at risk of losing the Supplier or having to take great expense to keep the Supplier afloat until the Purchaser can find a suitable replacement – either way a non-desirable outcome. In addition, the evaluation team should perform a more detailed analysis of the candidates through a Supplier quality audit or another alternative method of evaluation in order to ensure that all possible aspects of the relationship are analyzed prior to forming a partnership.
