Supplier Evaluation and Selection

1. Supplier Evaluation and
Selection
Sourcing and Supply Chain Management
Ref.: Handfiel, Monczka, Giunipero, Patterson
Presented by
Anish Gambhir

2. Highlights
1. Objective
2. Importance of Supplier Evaluation and Selection
3. Involvement
4. Supplier Evaluation and Selection Process
5. Performance Categories
6. Tool or instrument for use during suppler evaluation
7. Developing Supplier Evaluation and Selection Survey
• Example

3. Objective
Reduce Purchase Risk and Maximize overall value
to the Purchaser

4. Importance of Supplier Evaluation
and Selection
• For sound selection decision
• Long term agreements
• Willingness of switching is diminished

5. Involvement
Cross Functional Personnel
Purchase, Project Management, Engineering,
Finance, Quality

6. Process
Recognize the need
of Supplier Selection
Identify the sourcing
requirements
Determine Sourcing
Strategy
Identify Potential
supply Sources
Limit Suppliers in
Selection Pool
Determine method of
supplier Evaluation
and Selection
Select Supplier and
Reach Agreement

7. Performance Categories
Others
•Management and Employee Capability
•Cost Structure
•Process and Technological capability
•Sustainability and Environmental Compliance
•Financial stability
•E-Commerce capability
•Production scheduling and Control Systems
Cost Price
QualityDelivery

8. Tool or instrument for use during
suppler evaluation
1. Map the current evaluation and selection supplier
2. Integrate with internal Customers
3. Data Warehouse with supplier information
4. Third Party Support
5. New organizational Design features
6. Preferred Supplier List
• Example

9. Developing Supplier Evaluation and
Selection Survey
Finer Selection
1.Identify supplier evaluation categories
2.Assign weight to each evaluation category
3.Identify and weigh subcategories
4.Define scoring system for categories and subcategories
5.Evaluate supplier directly
6.Review evaluation results and make selection decision
7.Review and improve supplier performance continuously

10. Example
Vendor Assesment
Report

11. THANK YOU