Data-Driven Metrics Complement Subjective Feedback, Offering a More Complete Picture
MFG.com, the world’s largest online manufacturing marketplace, announces the launch of a new buyer rating system designed to add greater transparency to platform activities. Beyond reflecting subjective supplier feedback on issues related to a buyer’s willingness to communicate, adequacy of responses and bill payment timeliness, the new buyer rating incorporates objective measures that more fully capture the buyer and the value that firm may represent to an MFG.com supplier. In developing the new rating system, MFG.com sought to provide information that increases the trust factor in buyer-supplier relationships and enhances the ability to achieve a good fit in establishing these relationships.
A supplier’s decision to respond to a request for quote (RFQ) has a cost attached to it in terms of time. Whether 30 minutes or 3 hours, time spent developing a quote is time not used to develop other prospects or perform work. Thus, metrics that capture likeliness of an award and the business potential a buyer represents can greatly facilitate bid-no bid decision making. Recognizing this fact, MFG.com developed data-driven rating factors for the buyer rating that paint a fuller profile of the buyer:
- Number of RFQs posted within the last 24 months and the percentage awarded on the platform.
- The buyer’s total award amount (in dollars) over the last 24 months and the average dollar value of each award.
- Supplier feedback on the buyers responsiveness and on-time payments.
Beyond setting supplier expectations regarding award likelihood and enhancing fit in potential marketplace matches, the rating system encourages buyers to follow healthier practices when sourcing items over MFG.com. Buyers that post numerous RFQs but never award them will have that fact reflected in a lower rating. So, this category serves as an encouragement to finish transactions initiated on the platform.
Bo Hagler, chief executive officer, MFG.com, says, “The new, data-driven buyer rating system is part of a larger initiative to increase transparency in the MFG.com marketplace for all of our users. Previously, for example, MFG.com instituted a location verification policy whereby all suppliers must certify the geographic location of their primary production facility. This move assures that buyers know precisely where their parts are being manufactured, especially for those companies that adhere to a ‘Made in America’ business philosophy.”
Bo continues, “We believe trust and transparency are vital prerequisites to a successful marketplace. Suppliers and buyers must feel that MFG.com is an open environment where they can do business purposefully, armed with as much information as possible. Thus, we have many more efforts on the horizon directed at increasing transparency and establishing parameters for engagement that will increase the likelihood of a mutually beneficial buyer-supplier fit.”
MFG.com is an online, manufacturing marketplace that instantly connects companies seeking contract manufacturing services with qualified job shops around the world, based on the requirements of the job being sourced. With members in 172 countries, MFG is the largest and most well-established marketplace of its kind in the world. For more information, please call 888-404-9686 or visit our website at www.mfg.com.