Equipment for oil and gas manufacturing needs to be top-notch for optimal production. You can’t afford to squander time and money on maintenance and repairs. You also need components that will withstand the test of time and maintain processes throughout their lifetime.
To ensure this, the choice of oil and gas equipment manufacturer is as essential as the equipment itself. The supplier needs to offer high-quality tools at an affordable rate and play their supportive role effectively. Given that there are many suppliers on the market, you can employ any of these methods to arrive at your ideal dealer.
The weighted point method
This is the most commonly used method for the evaluation of suppliers. First, you must list out all the attributes you need in the manufacturing equipment, e.g., materials, shelf-life, cost, etc. Each characteristic is allocated a weight based on its importance level.
Next, every supplier’s performance is evaluated based on each of these attributes, and a score is assigned to every item. This score is multiplied by the assigned weight of each attribute. Each of these figures will then be added together to arrive at the total score for each supplier. The highest-scoring dealer will then be your best choice.
The categorical method
This is the most straightforward method. As with the weighted point method, begin by listing the relevant attributes. Next, preferably have a team of experts from within the firm, representing departments such as production, procurement, and logistics. This team should evaluate each supplier based on every attribute, using terms such as ‘good,’ ‘poor,’ and ‘neutral .’The supplier that obtains the highest score will be the winner.
The cost ratio method
This method evaluates suppliers on the basis of the cost of equipment. It involves getting the total cost of purchase, including the internal operating costs relating to the quality, delivery, and service of components. Each internal operating cost is converted to a ratio that is a percentage of the total value of the purchase. The overall cost ratio is then applied to each supplier’s unit price to calculate the net adjusted cost.
The best supplier will have the lowest net adjusted cost.
It is important to evaluate each supplier based on your important component attributes. Beyond these personal needs, confirm the supplier’s legitimacy by looking up prior customer reviews and complaints. It is better to take time making a choice as long as you get it right.
