Supplier selection is a critical process in procurement that involves identifying, evaluating, and choosing the most suitable suppliers to fulfill an organization’s needs. The success of any procurement strategy heavily relies on supplier selection as it can impact the organization’s ability to meet customer demands, achieve cost savings, and maintain a competitive edge in the marketplace.

Choosing the right suppliers requires a systematic approach that considers various factors, such as quality, reliability, pricing, delivery time, and the supplier’s overall capacity to meet the organization’s needs. With the right supplier selection process, procurement professionals can effectively manage their supply chain and build long-term relationships with suppliers, resulting in improved efficiency and cost savings.

Is poor supplier selection putting your organization at risk?

Unfortunately, most purchasing professionals don’t use a well-thought-out and consistent method for arriving at the best selection decisions. These are mandatory in today’s challenging business environment.

Selecting suppliers is one of the most important jobs you have as a procurement professional. A flawed selection process can result in:

  • poor supplier performance
  • supply disruptions
  • inefficiencies.

Developing a reliable process for identifying and selecting the “ultimate” supplier doesn’t have to be an impossible task. Here are steps designed to help you do a better job in supplier selection. In doing so, you and your organization can become more competitive, more efficient, and more profitable.

Consider these in your selection criteria:
  • The difference between supplier selection constraints and criteria
  • What the “Hierarchy of Constraints & Criteria” is
  • How weighted average scoring is applied to you selection process
  • How to develop a scoring scheme used in supplier scorecards
  • How to analyze proposals, qualify supplier proposals, and use supplier scorecards
  • What to use to ensure that your supplier selection process is on target
  • And much more!

Recommended Reading

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Published On: March 27th, 2021Comments Off on 7 Steps of Supplier Selection
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