2. • About Construction Futures Wales
• Construction Supply Chain
• Your Suppliers – What do you expect?
• Shopping or Buying?
• Your Customers – What do they expect?
• Public Sector Procurement
• Buying Locally
• PQQ and Tenders
• Meet the Buyer Interviews
Agenda
4. • Partnership - Welsh Government & CITB Wales
• Joint Investment Strategy £3m gross over 3 years
• Revenue only programme funding specialist to support
economic ‘growth’
CFW Programme
5. How can we help you?
• Company Health Check, Full Business Diagnostic,
Benchmarking & Strategy Planning
• Events, Networks, News and Reviews
• Fully Accredited Leadership & Management Courses
(Cardiff Met / CIM)
• Expert Consultancy, Supply Chain Development,
Collaborative Working, Understanding Costs, Sourcing,
ISO Standards, Achilles, LEAN, (etc)
6. How do I access this?
www.constructionfutureswales.co.uk
www.dyfodoladeiladucymru.co.uk
Click ‘Apply Now’ to start the process
Twitter: @CFW_Wales
7. Click ‘Apply Now’ Button!
CFW seeks to support:
• ‘Growth’ companies
• 10 employees +
• Turnover exceeding £500k
• Potential for growth & development
How do I access this?
17. Building Customer Value
Two Faces of Customer Value
Value of your Company
to the Customer
Value from Customer
to your Company
18. Building Customer Value
Value of your Company
to the Customer
• Value of Products & Services
– Quality
– Cost (Parts, UK Landed)
– Flexibility & Speed
– Complete Business Solution
• Value of Relationship
– Trust
– Knowledge & Expertise
– Convenience
– Network Links
• Value of the Brand
– Confidence (Investors,
Suppliers & Customers)
► Deliver Performance
► Improve Processes & Systems
► Material Control & CD programme
► Promote C.I. & Innovation
► Develop Organisation
► Foster Customer Relations
► Professionalism & Delivery
► Use All Resource & Develop more
► Use WG, CFW, SMART, Forums etc
► Protect the Brand
► Choose the Right Customer
► Choose the Right Projects
Your Priorities
19. Value from Customer
to your Company
• Cash In
– Healthy Balance Sheet
– Investment for the Future
– Grow Company Value
– Support Local Economy
• Customer Intelligence
– Knowledge Gained from Customer
– Customer’s Influence on Others
– Recommendations
• Customer Lifetime Value
– Long Term Partnerships
– Drives Continuous Improvement
► Appropriate Margins
► Only Value Adding Customers
► Disinvest when Necessary
► Promote Our After-Sales Services
► Focus on Existing Clients
► Innovate Products & Services
► Marketing by Customer Case Studies
► Actively Seek Referrals
► Formalise Assessment Method
► Manage / Influence Product Life
► Use Data to Drive C.I. Programme
Building Customer Value
Your Priorities
20. Exercise
Who Are Your Top ‘Quality’ Suppliers?
Material, Service, Plant and Equipment, etc.
What makes them good?
(In table groups for 10 minutes)
22. Delivery Excellence
StronglyDisagree
Disagree
PartiallyAgree
Agree
StronglyAgree
1 Our work quality always meets the customer's expectations
2 We are always on time for a job
3 We respond promptly and flexibly to GM Jones' requests
4 Our paperwork is completed immediately at job finish
5 We complete work on time and within budget
Customer First
StronglyDisagree
Disagree
PartiallyAgree
Agree
StronglyAgree
Open & Honest
StronglyDisagree
Disagree
PartiallyAgree
Agree
StronglyAgree
1 We always know GM Jones' requirements 1 We always communicate honestly with GM Jones
2 We always know GM Jones' customer's requirements 2 We never falsify records or over-bill
3 We respond promptly to all our customers 3 We never accept bribes from clients
4 Our quality of work is excellent 4 We wont toleate the theft of equipment or materials
5 We actively build good relationships with all our clients 5 We have an open book policy / transparency for key clients
Healthy & Safe
StronglyDisagree
Disagree
PartiallyAgree
Agree
StronglyAgree
Innovation
StronglyDisagree
Disagree
PartiallyAgree
Agree
StronglyAgree
1 We always provide risk assessments for each job 1 We are always looking for better ways of doing things
2 GM Jones provide Health & Safety information for each job 2 We operate a Continuous Improvement scheme
3 We always abide by site safety rules 3 We use the most efficient construction methods
4 When a hazard is spotted its acted upon 4 We are always looking for latest equipment developments
5 We operate our own H&S Management System 5 We actively watch our competitors innovative solutions
Care of Envirnoment
StronglyDisagree
Disagree
PartiallyAgree
Agree
StronglyAgree
Supplier Partnership
StronglyDisagree
Disagree
PartiallyAgree
Agree
StronglyAgree
1 We do Environmental Impact Assessments for each job 1 We value GM Jones' as a key strategic partner
2 GM Jones provide Environmental information for each job 2 We are seeking to build our relationship with GM Jones
3 We always seek to minimise & segregate waste at site 3 We contribute innovative solutions for GM Jones
4 We always seek to reduce our energy usage 4 We have our own secure supplier base
5 We operate our own Environmental Management System 5 We seek a win-win situation with all customers & suppliers
Supplier Self Assessment Form
23. The Supply Chain
Construction Supply Chains can be Complex
You are both Supplier & Customer
You have multiple Suppliers & multiple Customers
29. Importance to Company
• Annual spend on component
• Items used in high profit products
• Items used in a large number of products
• Items used on a bottleneck resource
• Items used in a new product, which is vital to future
growth
• Cost of non-availability is high
• Others?
30. Supply Complexity
• Item is in scarce supply
• The pace of technology change is high
• Impossible to use an alternative e.g. Patent, FSC etc.
• Barriers for a new supplier to enter the market are
high
• Logistics cost of buying item is high
• Supply risk e.g. single source
• Length of Supply Chain
• Spend with supplier is low
32. Non-Critical –
Characteristics
• From 80:20 rule usually represents a large number of
small value items
• Necessary for smooth running of business
• Does not represent a major supply risk as say more
than 5 suppliers
• Does not have a major impact on business, say
represent less than 1% of annual spend
Importance
Complexity
HighLow
HighLow
Non-Critical
Handle
Efficiently
Bottleneck
Ensure
Supply
LeverageE
xploit Market
Potential
Strategic
Cooperate
33. Non-Critical –
Purchasing Tips
• Make purchasing process efficient
• Negotiate contracts with a few sources
• Review annually
• Use blanket orders for call-offs by users
• Product standardisation
• Minimise deliveries through grouping
• VMI
Importance
Complexity
HighLow
HighLow
Non-Critical
Handle
Efficiently
Bottleneck
Ensure
Supply
LeverageE
xploit Market
Potential
Strategic
Cooperate
34. Leverage –
Characteristics
• Value of purchases are large
• A lot of competition in the market place due to the
number of suppliers
• Purchasers generally have significant bargaining
power
Importance
Complexity
HighLow
HighLow
Non-Critical
Handle
Efficiently
Bottleneck
Ensure
Supply
Leverage
Exploit
Market
Potential
Strategic
Cooperate
35. Leverage –
Purchasing Tips
Exploit Market potential through
• Spot buying to get lowest price
• Work with suppliers on value analysis and cost
reduction exercises
• Try to negotiate fixed price contracts if market
prices are likely to increase
• Group demands together to become a more
important customer.
Importance
Complexity
HighLow
HighLow
Non-Critical
Handle
Efficiently
Bottleneck
Ensure
Supply
Leverage
Exploit
Market
Potential
Strategic
Cooperate
36. Bottleneck –
Characteristics
• Items may be subject to patents
• Requirement to certify suppliers
• Items or finished products with high legislation
• Specialised technology
• Customer specified supplier
• Potential supply risk because few suppliers and
leverage with suppliers is small due to low value of
items
Importance
Complexity
HighLow
HighLow
Non-Critical
Handle
Efficiently
Bottleneck
Ensure
Supply
Leverage
Exploit
Market
Potential
Strategic
Cooperate
37. Bottleneck –
Purchasing Tips
• Short term - secure supply through contracts or
investing in inventory
• Longer term - seek to find alternatives with a wider
potential supply base, through re-design or re-
engineer
Importance
Complexity
HighLow
HighLow
Non-Critical
Handle
Efficiently
Bottleneck
Ensure
Supply
Leverage
Exploit
Market
Potential
Strategic
Cooperate
38. Strategic –
Characteristics
• Specially designed products
• Critical to competitive advantage
• High value items
• Some leverage with suppliers due to high value
items
• Items with Unique Investment
Importance
Complexity
HighLow
HighLow
Non-Critical
Handle
Efficiently
Bottleneck
Ensure
Supply
Leverage
Exploit
Market
Potential
Strategic
Cooperate
39. Strategic –
Purchasing Tips
• “Make v Buy” decision
• Acquisition
• Team decision
• Contingency planning and risk analysis
• Development of long-term supply
relationships
Importance
Complexity
HighLow
HighLow
Non-Critical
Handle
Efficiently
Bottleneck
Ensure
Supply
Leverage
Exploit
Market
Potential
Strategic
Cooperate
41. Purchasing
Specification
• Accurately relay requirements of specifier/user
• Unambiguous: cannot be distorted or misinterpreted by
supplier – (Especially if buying from overseas)
• Consider a ‘Golden Sample’
• Certification
• Delivery window
• Follow on Training
• Don’t forget T’s & C’s
• Mini PQQ or Tender?
• Have in your mind’s eye what an Ideal Supplier looks like
42. An Ideal Supplier
ÒCritical
BehaviourÓ
ÒCritical PerformanceÓ
Low
Low
Med
Med
High
High
Quality
Cost
Delivery
Technical
Proactive
Responsive
Innovative
Solution-finder
Critical Behaviour
Critical Performance
43. Identify Potential
Supply Sources
• Current Suppliers
• Sales Representatives
• Information databases
• Experience
• Trade Journals / Associations
• Trade Directories
• Industrial Trade Shows / Exhibitions
• Second-Party or Indirect Information i.e. CFW
• Internal sources or external contacts
• Internet Searches
44. Limit Suppliers
Mini PQQ/Tender
• Financial risk analysis and reputation
• Evaluation of previous performance
• Evaluation of supplier provided information through
preliminary survey or third party certification
• Potential Barriers
– Geography
– Country politics / language
– Competitors
– Size of supplier
– Currency risks
46. Method of
Supplier Evaluation
• Competitive tendering
• Evaluation of supplier provided information
– Use of initial survey
• Supplier visits
– Use of cross functional team
• Use of preferred suppliers
– Current performance data
• External or third-party information
– E.g. Dunn and Bradstreet
• Evaluation of sample products
47. Key Supplier
Evaluation Criteria
• Management Capability
• Personnel capabilities
• Cost structure
• Total quality performance, systems and philosophy
• Process and technology capability
• Environmental regulation compliance
• Financial stability and capability
• Delivery performance and planning systems
• E-commerce capability
• Supplier purchasing strategies
• Long term relationship potential
48. Select Supplier
• Enter negotiations to agree specific details
• Make decision
• Notify agreement
• Develop contract
• Continuously monitor
50. Purchasing Strategy
Procurement Optimisation
• Supply base optimisation
– Determine appropriate number and mix of suppliers
– Preferred Supplier List
– Group Purchasing
• Total Quality Management of Suppliers
– Use of quality techniques to develop a philosophy of zero defects and
continuous improvement
• Global Sourcing
– Usually adopted to provide immediate cost reduction
• Long term Supplier relationships
– Usually > 3 year period, Win-Win, critical items, increased involvement,
exceptional performance, unique technological expertise, NPI
• Supplier Development
– Facilitate development with suppliers that currently lack capability but do
not want to eliminate
• Total Cost of Ownership
– Introduces the total cost of purchasing and not just price
52. AreyouREALLY
Thisgood?
AreyouREALLY
Thisgood?
All managers are active inside and
outside the organisation in
promoting improvement activity.
Continuous improvement
is the culture and business
philosophy.
Strategic direction visibly achieved.
People’s success recognised by
leaders at all levels. Innovation and
continuous improvement is the
culture throughout the organisation.
Staff morale is high and exceeds
the competitive benchmark. The
full potential of all people is being
realised to achieve the
strategic direction.
All the companies resources are
deployed to meet agreed policies and
strategies. Benchmarking
against the ‘best in class’ is a key
resource improvement driver.
System ensures all stakeholders’ needs
are met by existing and new products
and services. Customers find it easy to
do business. Continuous feedback
causes improvement and
innovation.
Benchmarking against other
organisations shows employee
satisfaction is high and has an
improving trend. Two-way
appraisal is taken as ‘the norm’.
Data is gathered and views sought
from local society and employees, and
is used in business planning. The
organisation has received formal
recognition of environmental
performance.
The organisation performance
exceeds external benchmarks and
stakeholders are proud to be
associated with us. A commitment
by all to improve our business
continually is our culture.
Customer commitment is being
delivered by all processes and relation-
ships. Improvement and innovation
exceed customers’ expectations
and the competitive edge is being
increased.
Managers are willing to ‘let go’
and empower people to become
involved in improvement teams
between departments and with
customers and suppliers.
Strategic direction understood by all
stakeholders. Visibility championed by
top team. Key success indicators
(for example meeting customer needs)
are reviewed at all levels in the
organisation.
Employees are allowed to implement
improvement activity without reference
to management. a climate conducive to
personal development and continuous
improvement exists.
All areas of waste are measured and
form part of the improvement plans.
Data is gathered to form an accurate
view of competitors and used in
business planning. Financial plans
meet stakeholder needs.
Meeting customers needs is seen as
the purpose of the system. Procedures
and operating standards are owned by
the operators, managers and suppliers.
Processes are being controlled.
Continuous research exists to
identify and meet individual customer
needs. This research is fully
integrated into business planning,
improvement and innovation
processes.
Business changes that may adversely
affect staff are jointly worked on. Data
available to show that all employees
feel responsible for both their jobs &
improving the organisation’s capability.
Data shows the organisation ‘betters’
legal requirements. Encouragement
is given for employees to become
involved in supporting local
community activities. Public
aware of environmental strategy.
Benchmarking is used to compare
results with industry and ‘best in
class’ trends. Differences between
targets and results are always
published and available to stakeholders
on request.
Managers develop and support
improvement teams and make time
available for them to work. They
check progress and recognise
involvement, they say ‘thank-you’.
Strategic direction-vision, mission
objectives etc are communicated to
all stakeholders. A new culture is
being developed. Resources made
available for continuous improvement.
Delegation of responsibility to
people at appropriate levels takes
place. Appraisal schemes match
the aspirations of the people and
the organisation.
Decisions are made on the basis of
information. Stock is related to
customer requirements. Process
improvement and evaluation of new
technology takes place. Planning
systems are in use.
Critical processes are owned and
there is support to monitor and
improve them. Ownership is
assigned to management who
review corrective action etc .
The need to meet agreed customer
needs is reflected within the core
strategic plans. A customer care
policy exists and is widely
published.
Two way internal discussions take
place and some form of appraisal
process is used for joint improvement
targets. Communication and feedback
on a broad range of issues happens
morale is good.
Strategic quality planning incorporates
environmental and social obligations.
Responsibility is allocated to senior
managers. Environment audits
take place. Keen practitioners are
encouraged.
Indicators are used to measure
process and output and available
for improvement teams. Trends
are monitored and used to set
targets. Supplier quality is
measured and shared.
Management act as a team, ensure
two-way open communication,
become involved in improvement
groups. They agree plans and set
priorities.
Business plans encompass competi-
tion data eg. customer satisfaction
measures. Key points are commun-
nicated; individuals understand
and accept responsibility.
The management team recognises
that success comes from employ-
ees. Skills training is encouraged
and training plans are agreed and
aligned to company goals.
Information available-often talked
about or over analysed but rarely
used to improve. Cash and working
capital are seen by all to be
important. Stock controls in place.
Procedures have been written and
imposed. A bureaucratic system
exists with little chance for
improvement. Non conformances
are seen as ‘bad’. Systems
purpose not clear to operators.
Customer satisfaction measures
are available from surveys. This
data is used to set performance
standards and staff have been
trained in customer service.
People’s views are sought through
surveys. Staff are consulted on
improvement but grievances are
dealt with by ‘personnel’. Health
are safety are treated seriously.
Environmental and social require-
ments are dealt with to conform
fully with legal requirements.
Policy documents and internal
standards have been written.
Systems exist to monitor and
display financial and non-financial
indicators. They are communi-
cated to staff and improvement
targets indicated.
Management act as Individuals
in taking and communicating
Decisions. They promote the
Need to develop and improve
The organisation and to set
Targets.
Partial business plans exist-only
concentrating on financial targets.
Plans are not widely communicated
or visibly championed by the top
team.
Training is seen as a cost and
people are employed to do a job.
Resource management tends to be
directed solely at financial areas.
Decisions on stock and materials are
taken using hunches and ‘gut’
feelings. Information is ‘kept in
people’s heads.
Few procedures exist apart from
financial controls. Everyone does
their best and fire fighting is the norm.
Changes are made to fix
problems as and when appropriate.
Customer satisfaction only consid-
-ered in terms of external compl-
aints. Complaints are dealt with
when they arise with little attempt
to find or correct the cause.
Disputes and grievances are
resolved as and when they arise.
Absenteeism and/or staff turnover
are high. Morale at times is poor
and management tend to
concentrate on themselves.
Environmental and social obligations
seen as costly and a threat to
competitiveness. Damage limitation
exercises are used to counter
‘problems’. Community work
limited to individuals.
The financial results are
available and some non-financial
indicators published. They are seen
as management data by the majority
of staff.
Organisational Self Analysis Chart
Leadership
Policy &
Strategy
People
Score 1 2 3 4 5 6 7 8 9 10
Resources
Processes
Customer
Results
People
Results
Society
Results
Performance
Results
Score 1 2 3 4 5 6 7 8 9 10
Score 1 2 3 4 5 6 7 8 9 10
AreyouREALLY
Thisgood?
Score 1 2 3 4 5 6 7 8 9 10
AreyouREALLY
Thisgood?
Score 1 2 3 4 5 6 7 8 9 10
AreyouREALLY
Thisgood?
Score 1 2 3 4 5 6 7 8 9 10
AreyouREALLY
Thisgood?
Score 1 2 3 4 5 6 7 8 9 10
AreyouREALLY
Thisgood?
Score 1 2 3 4 5 6 7 8 9 10
AreyouREALLY
Thisgood?
Score 1 2 3 4 5 6 7 8 9 10
AreyouREALLY
Thisgood?
54. • Why Buy Locally?
• Local Authority/Public Sector Procurement
• Selection
• What are we looking for?
• How will we improve?
Public Sector
Procurement
55. Why Procure Locally?
• Transport Costs are Lower and environmental benefits
are enhanced
• Stock can be reduced
• Communications can be easier
• Regenerating of the Local Economy
• Local Suppliers are more flexible and accommodating
• Shorter times to market (e.g. fresh food)
• Supplier Development
56. Public Sector
Procurement
• What Public sector clients Should be Working
Towards
• Their use of Pre-qualification
• Rules re: Below Threshold Values
• Do’s and don’ts re PQQ
57. What Public Sector Clients
should be working towards
to assist SME’s
• Publicise Future Programmes especially lower values
• Consistent Application of New Rules
• Making the most of opportunities ‘below threshold’
• Running regular meet the buyer and pre-tender workshops
• Know who their local market is and its strengths and
weaknesses
• Identifying Opportunities for Joint Bidding and encourage
companies to work together for larger packages
• Monitoring Expressions of Interest from Local Suppliers and
how much is being spent in the local economy
58. And using
Pre-qualification
• Less pre-Qualification
• Exclude prequalification for below value procurements only asking
‘suitability assessment questions’ CCS
• Making it simple
• Tell you why we’re asking
• More use of Open Tendering and Dynamic Procurement Systems
• Advertise all opportunities (above £25k)
• Reviewing what businesses thought (of pre-qualification)
59. Process Above
Thresholds
• Advertise/ select
• PQQ process
• Evaluation
• Invite Tenders
• Evaluation
• Presentation
• Award
• Contract/Contract Management
60. Pitfalls of PQQ Returns
• Late !!
• Last Minute(yes it’s obvious)
• Submissions are not complete
• Learn to upload the information
• Keeping Constructionline Registration
Up to Date
• When a yes should be a no!
• Provide all of the information requested.
61. Tender Submission
• ON Time!!
• Supply all relevant information requested including method
statements(quality)
• Upload documentation test first and don’t leave it to the last
minute
• Show you have good quality processes for managing your business
• A good understanding of the specification and methodology for
delivery
• Good quality staff allocated to the project/procurement
• KPI’s
• Competitive Bids and sustainable
• Presentations relevant to the procurement
62. And Finally
for this section…
• If you fail, learn the lessons but don’t give up
• Improving access to our business
• Best Value
• Learning lessons from local business and
SME’s
• Share Case Studies and success stories
64. Questions and not
so good answers!!
Community Benefits:
Provide details of how
your plans for this
contract would provide
additional benefits to the
locality of the works.
65. Questions and not
so good answers!!
Community Benefits:
Provide details of how
your plans for this
contract would provide
additional benefits to the
locality of the works.
All work will be carried out
to a high standard,
enhancing the facilities of
the school. The benefits to
the community are facilities
that will enable pupils with
physical disabilities to move
around the school and use
facilities without putting
them at a disadvantage.
66. And the good answer
would include…
Lower Value Contract
• Ongoing competency for existing
apprenticeships/employees
• Working with local communities
• Use of local subcontractors
• Work experience (CITB/ CYT etc.)
• School visits
• Support for community projects
• In kind or actual donations to
community organisations
Higher value
• Employment Opportunities
locally ( detailed commitment)
including apprenticeships
• Meet the buyer events/use of
local supply chains
• Liaison with schools/colleges etc.
• Work experience
• Schools/college visits and
presentations
• Liaison with Community
Organisations
• Newsletters
• In kind actual donations to
community organisations
67. Explain what experience
you have of design and
build contracts. What are
the benefits and
drawbacks of these types
of contracts and how can
the drawbacks be
mitigated
Question
68. Explain what experience you have of
design and build contracts. What are
the benefits and drawbacks of these
types of contracts and how can the
drawbacks be mitigated
• Experience defined in a similar
project to that tendered
• Risk placed on the contractor
who may be best placed to
manage them(or not!)
• Longer procurement process
• Fixed cost for client
• Managing quality may be an
issue after award
• ‘Unforseens’ may be difficult to
mange and cause conflict
And the good answer
would include…
69. Some work may need to
be done during term time
e.g. finishing trades and
making good defects after
completion. Provide a
detailed proposal of how
you would ensure the
safety of pupils, school
staff and visitors.
Question
70. Some work may need to be done
during term time e.g. finishing trades
and making good defects after
completion. Provide a detailed
proposal of how you would ensure
the safety of pupils, school staff and
visitors.
• Cordoning
• Programme with Head Teacher
and schools
• Training of staff and employees
• Health and safety Policy
• Addressing risks(injury etc.)
• Depending on building, CRB
checks?
• Supervision
• Liaison with customer/client(not
to interfere with general
operation)
And the good answer
would include…
72. Provide details of response times for
different types of defect. Good response would include:
• Response would link to level of
identified priority (1-4) 1 is
critical/emergency
• Include allocated resource and
designated/supervisor/staff to
manage
• Zero defect policy?
• Customer/client liaison meeting
• Final signoff by Customer and
client
• Policy
And the good answer
would include…
73. • Please provide details of
how you would manage
waste on site
Question
74. • Please provide details of
how you would manage
waste on site
• Site waste management plan
• How waste will be segregated
• Commitment to 0% to landfill
• Designated responsibility
• Innovative ideas
• How subcontractors will be
required to do on site
• Targets
• How this has been dealt with
on a similar scheme
And the good answer
would include…
77. Meet The Buyer
• Be on time (20 to 30min appointment)
• Ideally in clean clothes can be corporate wear
• First Impressions
• Examples of work including ‘other’ skills, services or
products’
• Business Card
• Brochure/Memory Stick??
• Your Web Site – working, up to date e.g. 2011 Tweet!
• Carry out /follow up committed actions
78. Summary
• Look at you current company performance
– Look at the ‘Gaps’
• Look on “Sell 2 Wales”
• CFW Events
• CFW Meet The Buyer
• Consider CFW 1:2:1 Support to help
• Presentation will be on CFW website
81. Questions at PQQ
C – 2f
Explain what experience you have of design and
build contracts. What are the benefits and
drawbacks of this form of procurement?
Provide up to three recent and relevant examples.
Text max
500 words
It is advantageous if the supplier can
demonstrate relevant experience and
understanding of design and build contracts.
SCORED
82. What’s good about working
with ?????
• Regular and repeat
business
• Payment on time
• Association with a quality
outfit
• Working alongside the
guys
• etc
What could be better?
• Communication about up
coming work
• Communication about job
detail
• Scheduling of trades
• Availability of materials
• etc
Supplier Partnership
83. Buying Cycle
STEP 1
Identify or Anticipate
Material or Service
needed
STEP 2
Evaluate Potential
Supply Sources
STEP 3
Select Suppliers
STEP 4
Place the Order
STEP 5
Continuously Measure
and Manage Supplier
Performance
84. Recognise need for
Supplier Selection
• Purchase Order/ Requisition
• New product or service development
• Supplier not supportive of your company
• Poor supplier Quality or Delivery
• Reduce Risk
• Reduce Cost