Procurement supplier selection process.
How to choose a supplier: Notes on the Procurement supplier selection process.
A strong supply base is essential to a strong supply chain. How do you select your suppliers? What suggestions do you have for others?
The supplier selection process is an important part of procurement, as it involves choosing the best supplier for a company’s needs. Here are some steps that companies can take to effectively choose a supplier:
- Identify needs: The first step in the supplier selection process is to clearly define the company’s needs. This should include determining the types of goods or services that are required, as well as any other requirements, such as delivery schedules or quality standards.
- Research potential suppliers: Once the company’s needs have been identified, the next step is to research potential suppliers. This can involve reviewing industry directories, conducting internet searches, and reaching out to industry associations or trade groups.
- Evaluate potential suppliers: After identifying a list of potential suppliers, the next step is to evaluate each one. This should include reviewing their capabilities, such as their production capacity and delivery schedules, as well as their financial stability and reputation.
- Negotiate terms and conditions: After selecting a supplier, the next step is to negotiate terms and conditions, such as pricing, delivery schedules, and payment terms. It is important to clearly communicate the company’s needs and expectations during this process.
- Monitor performance: Once a supplier has been chosen and a contract has been signed, it is important to regularly monitor their performance to ensure that they are meeting the company’s needs. This can involve reviewing delivery schedules, tracking quality control measures, and conducting periodic performance evaluations.
By following these steps, companies can effectively choose a supplier that meets their needs and helps ensure the success of their business.
Supply Chain and Supplier Selection Resources.
- Blockchain and the Internet of Things explained.
- Calculating Safety Stock: Protecting Against Stock Outs.
- Dell Push-Pull Supply Chain Strategy. 9 min VIDEO, 20k views.
- Digital Supply Networks: The digital transformation.
- Distribution Center Conveyor System.
- History of the Toyota Production System (TPS). Lean manufacturing.
- How Orange Juice Is Made. Supply Chain of orange juice. 3.7 million views.
- GE Transportation: GE Supply Chain.
- IKEA’s Supply Chain.
- Robot army helps run warehouses. 12k views.
- SCM Top Companies.
- Six Sigma In Plain English.
- Supply Chain Resources by Topic & Supplier.
- Supply Chain and Strategy Key Concepts.
- The Bullwhip Effect 101. 5 min video, 16k views.
Supplier Selection and Procurement Training Quotes.
“Good supplier management is essential to a well run supply chain.” ~EverythingSupplyChain.com
“A well trained procurement organization can add major dollars to the organization through cost savings.” ~EverythingsupplyChain.com
“Having high performing suppliers is key to a well run supply chain.” ~EverythingSupplyChain.com
“Train your procurement organization well. This investment can save millions of dollars.” ~EverythingSupplyChain.com
“Strategic sourcing in the simplest terms – leveraging all resources to get the best value for the company.” ~EverythingSupplyChain.com
