The document discusses supplier evaluation and selection. It provides an overview of the supplier evaluation and selection process, key criteria for evaluating suppliers, and developing surveys to aid in selection. Critical issues in supplier selection are also addressed. The presentation covers developing a multi-step process for evaluating suppliers on criteria like quality, cost, management capabilities, financial stability, and long-term relationship potential to select suppliers that minimize risk and maximize value.
The presentation is about procurement and sourcing strategies. The process, types, importance and goals of procurement and sourcing have been discussed briefly.
the presentation is about managing coordination between the supply chains for fast movement of resources.factors affecting the coordiantion in supply chain.
Training Slides of Supplier Assessment and Performance Measurement, discussing the importance of Suppliers.
For further information regarding the course, please contact:
info@asia-masters.com
www.asia-masters.com
Creating and Managing Supplier RelationshipsFaHaD .H. NooR
Companies require their suppliers to deliver innovative and quality products not only in just-in-time (JIT) fashion, but also at a competitive price.
Good supplier relations can provide many benefits such as flexibility in terms of delivery, better quality, better information, and better material flows between buyers and suppliers.
Selecting the right supply partners and successfully managing these relationships over time is thus strategically important; it is often stated that “a firm is only as good as its suppliers.”
• Make Versus Buy
• Benefit of Outsourcing
• Source of Supplier Information
• Strategis Selection
• Supplier Relationship Management (SRM)
• Industry Example
The presentation is about procurement and sourcing strategies. The process, types, importance and goals of procurement and sourcing have been discussed briefly.
the presentation is about managing coordination between the supply chains for fast movement of resources.factors affecting the coordiantion in supply chain.
Training Slides of Supplier Assessment and Performance Measurement, discussing the importance of Suppliers.
For further information regarding the course, please contact:
info@asia-masters.com
www.asia-masters.com
Creating and Managing Supplier RelationshipsFaHaD .H. NooR
Companies require their suppliers to deliver innovative and quality products not only in just-in-time (JIT) fashion, but also at a competitive price.
Good supplier relations can provide many benefits such as flexibility in terms of delivery, better quality, better information, and better material flows between buyers and suppliers.
Selecting the right supply partners and successfully managing these relationships over time is thus strategically important; it is often stated that “a firm is only as good as its suppliers.”
• Make Versus Buy
• Benefit of Outsourcing
• Source of Supplier Information
• Strategis Selection
• Supplier Relationship Management (SRM)
• Industry Example
Negotiation PowerPoint Slides include topics such as: basic components of negotiation, questions to ask, identifying the issues, assembling the facts, negotiation success strategies, techniques, and tactics, pros and cons of various negotiation approaches, 22 characteristics of effective negotiation, mediation, arbitration, maximizing your appearance and mannerisms, how to's and much more.
This is a powerpoint presentation designed to be used in a Business Class. The focus of this presentation is on a Target Market and How to determine a Target Market. This presentation was desinged for educational purposes.
This lecture slide was prepared for my guest lecture session in Bina Nusantara University's undergraduate program of International Business Management. It discussed the role of procurement function in an organisation, and how the function has been continuously evolved to meet market expectation by engaging business partners, as well as intra-company stakeholders. It shares top tips of how buyer can create value-add to the business from the book “Value-Added Purchasing” written by Eberhard E. Schening, PhD. Enjoy this as a part of your learning journey!
PACE Sourcing & Business Advisory june2020_vfAjay Garg
Introducing PACE as a Sourcing and Business Advisory Firm
Your one-stop-shop for efficient procurement and supply chain;
We specialize in impacting your bottom line by reducing your cost of goods and services purchased.
We operate from India and promote India as your favored low-cost sourcing geography.
We stitch the end to end supply chain to find and qualify capable suppliers, get the new products developed, quality-assured, packed in export worthy shipments and ship to your destination ;
We have a team of experienced analysts, researchers, and quality specialists to service your sourcing needs in or from India;
Our rich supplier database ensures that you are always working with suppliers who can provide sustained services and consistent supplies meeting your requirements.
#Demand Forecasting & Inventory Optimization# By SN PanigrahiSN Panigrahi, PMP
#Demand Forecasting & Inventory Optimization# By SN Panigrahi
Demand Forecasting is the Scientific & Analytical Prediction & Estimation of Future Demand for Goods or Services for a Particular Period for the Purpose of Short Term or Long Term Decision & Planning.
It is Necessary for Sound Planning
It Lays the Foundation for Production, Operation & Sales
Basis for Budgeting & Financial Projections
Provides Guidelines for Forecasts of Related Industries
Webinar: Your Burning CRO and Vendor Selection Questions… AnsweredSeuss+
From process stages to vendor selection criteria to frameworks and everything in between, discover the answers and insights from our panel of experts. You’ll learn from our 20+ years of experience running successful CRO vendor selections for growing and evolving biotechs. Get the answers you’ve been looking for and uncover the hidden challenges linked to this complex world that can sometimes derail or delay clinical trials: “What are the 3, 5, 7 … steps in the supplier selection process?”, “What are the most important criteria for selecting a CRO or vendor?”, “How do you evaluate a CRO?”, “What are the steps involved in a vendor selection framework?”, “What is a vendor (evaluation) matrix”, and “How long does it take on average to qualify a new Vendor?”.
Learn more about how Seuss+ can help you at our website www.seuss.plus
Gaining Competitive Advantage through Supplier Collaboration and Supplier Rel...TraceGains
If you have any questions or comments, please send them to connect@tracegains.com. We look forward to hearing from you.
Race to win, rather than race to the bottom!
Continued consolidation of the food supply base will lead to more powerful and assertive customers in some markets. These customers are placing increasing demand on the entire supply chain for reduced cost and higher levels of value delivery. While many companies focus on price reduction as a solution they soon realize that there is only so much supplier margin and they soon become in effective in trying to meet the increasing demands of the customer and company management. They also realize that there is a significant cost and time involved in changing and developing new suppliers.
The solution to increasing demand for value is to get business alignment across the entire supply chain. This requires value-based relationships will require substantial changes in behavior by the buyer and seller. This webinar will detail the need to establish clear processes through which buyers and suppliers interface and collaborate. The focus is on building and developing a Supplier Relationship Management (SRM) focus for your business.
Things covered in the seminar:
-How can a company build a process that delivers cost and value improvement Year on Year
Understanding the Supplier Relationship Management Process
-Identifying which suppliers are good candidates for SRM
-How to drive collaboration with suppliers
This presentation simplifies the content of a white paper presented by Piyush Kumar regarding the Impact of Performance, Cost and Competitive Considerations on the relationship between Satisfaction and Repurchase Intent in Business Markets.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Skye Residences | Extended Stay Residences Near Toronto Airportmarketingjdass
Experience unparalleled EXTENDED STAY and comfort at Skye Residences located just minutes from Toronto Airport. Discover sophisticated accommodations tailored for discerning travelers.
Website Link :
https://skyeresidences.com/
https://skyeresidences.com/about-us/
https://skyeresidences.com/gallery/
https://skyeresidences.com/rooms/
https://skyeresidences.com/near-by-attractions/
https://skyeresidences.com/commute/
https://skyeresidences.com/contact/
https://skyeresidences.com/queen-suite-with-sofa-bed/
https://skyeresidences.com/queen-suite-with-sofa-bed-and-balcony/
https://skyeresidences.com/queen-suite-with-sofa-bed-accessible/
https://skyeresidences.com/2-bedroom-deluxe-queen-suite-with-sofa-bed/
https://skyeresidences.com/2-bedroom-deluxe-king-queen-suite-with-sofa-bed/
https://skyeresidences.com/2-bedroom-deluxe-queen-suite-with-sofa-bed-accessible/
#Skye Residences Etobicoke, #Skye Residences Near Toronto Airport, #Skye Residences Toronto, #Skye Hotel Toronto, #Skye Hotel Near Toronto Airport, #Hotel Near Toronto Airport, #Near Toronto Airport Accommodation, #Suites Near Toronto Airport, #Etobicoke Suites Near Airport, #Hotel Near Toronto Pearson International Airport, #Toronto Airport Suite Rentals, #Pearson Airport Hotel Suites
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
The effects of customers service quality and online reviews on customer loyal...
Supplier evaluation & selection
1. PURCHASING & SUPPLY CHAIN MANAGEMENT, 4ePURCHASING & SUPPLY CHAIN MANAGEMENT, 4e
CENGAGE LEARNINGCENGAGE LEARNING
Monczka – Handfield – Giunipero – PattersonMonczka – Handfield – Giunipero – Patterson
Presentation onPresentation on
Supplier Evaluation and SelectionSupplier Evaluation and Selection
By Pradeep OwalekarBy Pradeep Owalekar
Based on the cited BookBased on the cited Book
2. Coverage of Topic
Supplier evaluation and selectionSupplier evaluation and selection
processprocess
Key supplier evaluation criteriaKey supplier evaluation criteria
Developing a supplier evaluation andDeveloping a supplier evaluation and
selection surveyselection survey
Critical supplier selection issuesCritical supplier selection issues
Reducing supplier evaluation andReducing supplier evaluation and
selection cycle timeselection cycle time
22
3. Evaluation and Selection Process
No “one best way”No “one best way”
Overall objective is to reduce sourcingOverall objective is to reduce sourcing
risk and maximize value to the buyerrisk and maximize value to the buyer
Need to select suppliers for the long-Need to select suppliers for the long-
termterm
33
5. Scenarios requiring Supplier Evaluation and Selection
Decisions
During new product developmentDuring new product development
Due to poor existing supplierDue to poor existing supplier
performanceperformance
At the end of an existing contractAt the end of an existing contract
Buying new equipmentBuying new equipment
Expanding into new markets or productExpanding into new markets or product
lineslines
Receiving internal user requisitionsReceiving internal user requisitions
55
6. Scenarios requiring Supplier Evaluation and Selection
Decisions
Performing market testsPerforming market tests
Facing countertrade requirementsFacing countertrade requirements
During outsourcing analysisDuring outsourcing analysis
Consolidating volumesConsolidating volumes
Conducting a reverse auctionConducting a reverse auction
When current suppliers have insufficientWhen current suppliers have insufficient
capacitycapacity
Reducing supply base sizeReducing supply base size
Pradeep B. OwalekarPradeep B. Owalekar
66
7. Identify Key Sourcing Requirements
May be determined by internal andMay be determined by internal and
external customersexternal customers
Supplier qualitySupplier quality
CostCost
Delivery performanceDelivery performance
OtherOther
Vary widely from item to itemVary widely from item to item
Pradeep B. OwalekarPradeep B. Owalekar
77
8. Determine Sourcing Strategy
Single vs. multiple sourcingSingle vs. multiple sourcing
Short-term vs. long-term contractsShort-term vs. long-term contracts
Design support vs. operational supportDesign support vs. operational support
Full-service vs. non-full-serviceFull-service vs. non-full-service
supplierssuppliers
Domestic vs. foreign-based suppliersDomestic vs. foreign-based suppliers
Collaboration vs. arm’s lengthCollaboration vs. arm’s length
relationshiprelationship
Pradeep B. OwalekarPradeep B. Owalekar
88
9. Identify Potential Sources
How well existing suppliers can satisfyHow well existing suppliers can satisfy
cost, quality, and/or other performancecost, quality, and/or other performance
objectivesobjectives
Strategic importance of purchaseStrategic importance of purchase
requirementrequirement
Technical complexity of purchaseTechnical complexity of purchase
requirementrequirement
Pradeep B. OwalekarPradeep B. Owalekar
99
10. Information Search Requirements
Purchasing & Supply Chain Management, 4ePurchasing & Supply Chain Management, 4e
1010
High Capability ofHigh Capability of
SuppliersSuppliers
Low Capability ofLow Capability of
SuppliersSuppliers
High StrategicHigh Strategic
Importance toImportance to
BuyerBuyer
Minor to Moderate
Information
Search
Major Information
Search
Low StrategicLow Strategic
Importance toImportance to
BuyerBuyer
Minor Information
Search
Minor to Moderate
Information
Search
11. Sources of Information
Current suppliersCurrent suppliers
Preferred suppliersPreferred suppliers
SalesSales
representativesrepresentatives
InformationInformation
databasesdatabases
ExperienceExperience
Trade journalsTrade journals
Trade directoriesTrade directories
Trade showsTrade shows
Second-party orSecond-party or
indirect informationindirect information
Internal sourcesInternal sources
Internet searchesInternet searches
Pradeep B. OwalekarPradeep B. Owalekar
1111
12. Sourcing Alternatives
Manufacturer vs. distributorManufacturer vs. distributor
Vendor-managed inventoryVendor-managed inventory
Integrated supplyIntegrated supply
Local, national, or international suppliersLocal, national, or international suppliers
Large vs. small suppliersLarge vs. small suppliers
CapabilityCapability
Multiple vs. single sourcingMultiple vs. single sourcing
Purchasing & Supply Chain Management, 4ePurchasing & Supply Chain Management, 4e
1212
13. Method of Evaluation and Selection
Evaluation from supplier-providedEvaluation from supplier-provided
informationinformation
Supplier visitsSupplier visits
Use of preferred suppliersUse of preferred suppliers
External or third-party informationExternal or third-party information
Pradeep B. OwalekarPradeep B. Owalekar
1313
14. Key Suppliers Evaluation Criteria
Price, quality, and deliveryPrice, quality, and delivery
Management capabilityManagement capability
Employees capabilitiesEmployees capabilities
Cost structureCost structure
Total quality performance, systems,Total quality performance, systems,
and philosophyand philosophy
Process and technological capabilityProcess and technological capability
Pradeep B. OwalekarPradeep B. Owalekar
1414
15. Key Suppliers Evaluation Criteria
Environmental regulation complianceEnvironmental regulation compliance
Financial stabilityFinancial stability
Production scheduling and controlProduction scheduling and control
systemssystems
E-commerce capabilityE-commerce capability
Supplier’s sourcing strategies, policies,Supplier’s sourcing strategies, policies,
and techniquesand techniques
Longer-term relationship potentialLonger-term relationship potential
Purchasing & Supply Chain Management, 4ePurchasing & Supply Chain Management, 4e
1515
16. Management Capabilities
Does management practice long-rangeDoes management practice long-range
planning?planning?
Has management committed to totalHas management committed to total
quality management and continuousquality management and continuous
improvement?improvement?
How high is management turnover?How high is management turnover?
What are the professional andWhat are the professional and
educational backgrounds of keyeducational backgrounds of key
managers?managers?
Pradeep B. OwalekarPradeep B. Owalekar
1616
17. Management Capabilities
What is the organization’s vision?What is the organization’s vision?
Is the company customer focused?Is the company customer focused?
What is the history of labor-What is the history of labor-
management relations?management relations?
Is the organization making necessaryIs the organization making necessary
capital investments?capital investments?
Pradeep B. OwalekarPradeep B. Owalekar
1717
18. Management Capabilities
Is the organization prepared to faceIs the organization prepared to face
future competitive challenges?future competitive challenges?
Does management fully understand theDoes management fully understand the
importance of strategic sourcing?importance of strategic sourcing?
Pradeep B. OwalekarPradeep B. Owalekar
1818
19. Employee Capabilities
Degree of commitment to quality andDegree of commitment to quality and
continuous improvementcontinuous improvement
Overall skills and abilitiesOverall skills and abilities
Employee-management relationsEmployee-management relations
Worker flexibilityWorker flexibility
Workforce turnoverWorkforce turnover
Willingness to contribute to improvedWillingness to contribute to improved
operationsoperations
Pradeep B. OwalekarPradeep B. Owalekar
1919
20. Total Cost Structure
Direct labor costsDirect labor costs
Indirect labor costsIndirect labor costs
Material costsMaterial costs
Manufacturing or process operatingManufacturing or process operating
costscosts
General overhead costsGeneral overhead costs
Pradeep B. OwalekarPradeep B. Owalekar
2020
21. Challenges of Total Cost Analysis
Supplier may not understand its trueSupplier may not understand its true
costscosts
Unsophisticated cost accounting systemUnsophisticated cost accounting system
Cost data is considered proprietaryCost data is considered proprietary
Buyer’s knowledge may undermineBuyer’s knowledge may undermine
supplier’s pricing strategysupplier’s pricing strategy
Supplier is concerned about potentialSupplier is concerned about potential
misuse of its cost datamisuse of its cost data
Pradeep B. OwalekarPradeep B. Owalekar
2121
22. Total Quality Performance
Management commitmentManagement commitment
Use of SPC techniquesUse of SPC techniques
Level of defectsLevel of defects
Safety, training, and maintenanceSafety, training, and maintenance
Use of ISO 9000 criteriaUse of ISO 9000 criteria
Purchasing & Supply Chain Management, 4ePurchasing & Supply Chain Management, 4e
2222
23. Process and Technological Capability
Level of technology, design capability,Level of technology, design capability,
methods used, and equipmentmethods used, and equipment
Current vs. future capabilitiesCurrent vs. future capabilities
Resources committed to R&DResources committed to R&D
Pradeep B. OwalekarPradeep B. Owalekar
2323
24. Environmental Compliance
Disclosure of environmental infractionsDisclosure of environmental infractions
Hazardous and toxic waste generationHazardous and toxic waste generation
and managementand management
Recycling managementRecycling management
ISO 14000 certificationISO 14000 certification
Control of ozone-depleting substancesControl of ozone-depleting substances
Pradeep B. OwalekarPradeep B. Owalekar
2424
25. Financial Stability
Often used as a screening process inOften used as a screening process in
the initial selection phasethe initial selection phase
Risks of a financially weak supplierRisks of a financially weak supplier
Supplier will go out of businessSupplier will go out of business
Insufficient resources to invest inInsufficient resources to invest in
improved plant and equipmentimproved plant and equipment
Supplier may become too dependent onSupplier may become too dependent on
buyerbuyer
May be an indicator of other problemsMay be an indicator of other problems
Pradeep B. OwalekarPradeep B. Owalekar
2525
26. Production Scheduling and Control
Does the supplier use MRP?Does the supplier use MRP?
Does the supplier track material andDoes the supplier track material and
production cycle times?production cycle times?
Can the supplier support the buyer’sCan the supplier support the buyer’s
JIT initiatives?JIT initiatives?
What are the supplier’s real lead times?What are the supplier’s real lead times?
What is the supplier’s on-time deliveryWhat is the supplier’s on-time delivery
performance?performance?
Pradeep B. OwalekarPradeep B. Owalekar
2626
27. E-Commerce Capability
Web-based B2B vs. EDI systemsWeb-based B2B vs. EDI systems
Does the supplier have CAD capability?Does the supplier have CAD capability?
Does the supplier use bar coding?Does the supplier use bar coding?
Does the supplier use RFID?Does the supplier use RFID?
Can the supplier provide ASNs?Can the supplier provide ASNs?
Can the supplier accept EFT transfers?Can the supplier accept EFT transfers?
Does the supplier utilize e-mail?Does the supplier utilize e-mail?
Pradeep B. OwalekarPradeep B. Owalekar
2727
28. Supplier’s Supply Base Strategies
Tier 1 vs. Tier 2 vs. Tier 3 suppliersTier 1 vs. Tier 2 vs. Tier 3 suppliers
Sharing of informationSharing of information
Level of supplier developmentLevel of supplier development
activities in the supplier’s own supplyactivities in the supplier’s own supply
basebase
Pradeep B. OwalekarPradeep B. Owalekar
2828
29. Potential for Long-Term Relationships
Is the supplier willing to participate?Is the supplier willing to participate?
Can the supplier commit necessaryCan the supplier commit necessary
resources?resources?
When in the design phase can theWhen in the design phase can the
supplier participate?supplier participate?
How is the supplier unique?How is the supplier unique?
Can the supplier participate in jointCan the supplier participate in joint
problem solving and improvement?problem solving and improvement?
Pradeep B. OwalekarPradeep B. Owalekar
2929
30. Potential for Long-Term Relationships
Will there be free and open informationWill there be free and open information
sharing?sharing?
Will the supplier engage in futureWill the supplier engage in future
planning?planning?
Can the supplier maintain the buyer’sCan the supplier maintain the buyer’s
need for confidentiality?need for confidentiality?
What is the general level of comfortWhat is the general level of comfort
between the parties?between the parties?
Pradeep B. OwalekarPradeep B. Owalekar
3030
31. Potential for Long-Term Relationships
How well does the supplier understandHow well does the supplier understand
the buyer’s industry and business?the buyer’s industry and business?
Will the supplier share cost data?Will the supplier share cost data?
Is the supplier willing to share innovationIs the supplier willing to share innovation
data early?data early?
Can the supplier commit to dedicatedCan the supplier commit to dedicated
capacity?capacity?
What is the supplier’s commitment level?What is the supplier’s commitment level?
Pradeep B. OwalekarPradeep B. Owalekar
3131
32. Evaluation and Selection Surveys
Identify supplier evaluation categoriesIdentify supplier evaluation categories
Assign a weight to each categoryAssign a weight to each category
Identify and weight subcategoriesIdentify and weight subcategories
Define a scoring system for categoriesDefine a scoring system for categories
and subcategoriesand subcategories
Evaluate supplier directlyEvaluate supplier directly
Review results and make decisionReview results and make decision
Pradeep B. OwalekarPradeep B. Owalekar
3232
33. Initial Supplier Evaluation
Category Weight Subweight
Score (1
- 5 scale)
Weighted
Score
Subtotal
Quality Systems 20
Process control systems 5 4 4.0
Total quality commitment 8 4 6.4
PPM defect performance 7 5 7.0 17.4
Management Capability 10
Management/labor relations 5 4 4.0
Management capability 5 4 4.0 8.0
Financial Condition 10
Debt structure 5 3 3.0
Turnover ratios 5 4 4.0 7.0
Cost Structure 15
Costs relative to industry 5 5 5.0
Understanding of costs 5 4 4.0
Cost control/reduction efforts 5 5 5.0 14.0
Delivery Performance 15
Performance to promise 5 3 3.0
Lead-time requirements 5 3 3.0
Responsiveness 5 3 3.0 9.0
Technical/Process Capability 15
Product innovation 5 4 4.0
Process innovation 5 5 5.0
research and development 5 5 5.0 14.0
Information Systems Capability 5
EDI capability 3 5 3.0
CAD/CAM 2 0 0.0 3.0
General 10
Support of minority suppliers 2 3 1.2
Environmental compliance 3 5 3.0
Supply base management 5 4 4.0 8.2
Total Score 80.6
34. Critical Supplier Selection Issues
Size relationshipSize relationship
Use of international suppliersUse of international suppliers
Competitors as suppliersCompetitors as suppliers
Countertrade requirementsCountertrade requirements
Social objectivesSocial objectives
Purchasing & Supply Chain Management, 4ePurchasing & Supply Chain Management, 4e
3434
35. Reducing Selection Cycle Time
Map the existing processMap the existing process
Integrate with internal customersIntegrate with internal customers
Data warehouse with supplierData warehouse with supplier
informationinformation
Third-party supportThird-party support
3535
36. Reducing Selection Cycle Time
New organization design featuresNew organization design features
Preferred supplier listPreferred supplier list
Electronic toolsElectronic tools
Predefined contract language andPredefined contract language and
shorter contractsshorter contracts
Pradeep B. OwalekarPradeep B. Owalekar
3636
37. A Good Supplier Does the Following:
Builds quality into the product, aimingBuilds quality into the product, aiming
for zero defectsfor zero defects
Makes delivery performance a priorityMakes delivery performance a priority
Demonstrates responsiveness to aDemonstrates responsiveness to a
buyer’s needsbuyer’s needs
Works with the buyer to reduce leadWorks with the buyer to reduce lead
timestimes
Pradeep B. OwalekarPradeep B. Owalekar
3737
38. A Good Supplier Does the Following:
Provides the buyer with capability andProvides the buyer with capability and
workload informationworkload information
Creates the futureCreates the future
Reinvests part of its profits into R&DReinvests part of its profits into R&D
with a long-term viewwith a long-term view
Meets stringent financial stabilityMeets stringent financial stability
criteria when evaluating newcriteria when evaluating new
customerscustomers
3838