Supplier Selection Process

So you have a design that you think is ready for manufacturing, both at the supplier and in your own system. Now you have to go out and find the right supplier to do the job. What criteria are you going to use? Geographic location? Past performance? Lowest price?
We all know which one gets used, past performance - NOT. The powers to be usually go with the lowest price regardless of everything else. In the end, the old adage of you get what you pay for rings true. The guy that can make it as cheap as possible usually delivers late, has high scrap rates internally and a high PPM rate within your facility. And to add to that, who knows where this company is that can provide you with a low piece price, usually not right next door. The approach I prefer is a combination of as many attributes that I can gather. I do this by combining an on-site audit with any historical data available. For new suppliers making a bid, the audit is the only thing you have, unless you have a common denominator - like a business associate who deals with them or you have access to their customer list and ratings. Either way, the unknown is always an adventure. At least looking to your current list of suppliers, you know what you are getting.