What method can be used to evaluate supplier innovation capabilities?

Evaluating supplier innovation capabilities is best achieved through supplier development programs and collaborative workshops. These methods foster a deeper relationship between the buyer and supplier, allowing for open communication and collaboration on innovative projects. By engaging in joint activities, both parties can share their expertise and insights, which can lead to enhanced innovation through brainstorming, problem-solving, and creative thinking. Through this collaborative process, suppliers can demonstrate their capabilities, and the buyer can evaluate how well the supplier can contribute to innovative solutions.

In contrast, strict audits of financial records primarily focus on the financial health and compliance of a supplier, rather than their innovative capabilities. Annual surveys of customer satisfaction may provide insights into the customer perspective but don’t specifically assess how innovative a supplier is. Random supplier visits without structured assessments lack a focused approach to gauge innovation, making them less effective in evaluating capabilities in this area.