SCM 355 Important Concepts Chapter 7

SCM 355 Important Concepts Chapter 7 - SCM 355 Important...

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SCM 355 Important Concepts Chapter 7 (Supplier Evaluation and Selection) One of the most important processes that organizations perform is the evaluation, selection and continuous measurement of suppliers. Regardless of the approach employed, overall the objective of the evaluation process should be to reduce purchase risk and maximize overall value to the purchaser. The Supplier Evaluation and Selection Process 1. Recognize the need for supplier selection. 2. Identify key sourcing requirements. 3. Determine sourcing strategy. Single versus multiple sources, short-term versus long-term purchase contracts, selecting suppliers that provide design support versus those that lack design capability, full services versus non-full service suppliers, domestic versus foreign suppliers and expectation of a close working relationship versus arm-length purchasing 4. Identify potential supply sources.
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This note was uploaded on 06/24/2008 for the course SCM 355 taught by Professor Pearson during the Spring '08 term at ASU.

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SCM 355 Important Concepts Chapter 7 - SCM 355 Important...

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