06_Supplier_evaulation_and_selection

06_Supplier_evaulation_and_selection - Supplier Evaluation...

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- 1 - Supplier Evaluation and Selection
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- 2 - First-Cut Strategic Considerations Existing versus new suppliers Number of suppliers Size of supplier Location / proximity Type of supplier relationship Contract length Type of supplier Social, political, and environmental considerations Financial stability
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- 3 - Ability to Perform Quality Reliability Perceived quality Conformance Durability Delivery Reliability Delivery as promised Order fulfillment speed Flexibility Flexibility to change output volume Flexibility to change product mix Delivery flexibility Cost Direct manufacturing costs Total product costs Raw material costs Logistics and distribution system Service capability Financial status Organization and management Labor status Legal and regulatory environment E-commerce capability The Supplier Selection Funnel
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- 4 - Supplier Evaluation and Selection
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06_Supplier_evaulation_and_selection - Supplier Evaluation...

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