Supplier evaluation

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Supplier evaluation by Mind Map: Supplier evaluation

1. Goals of supplier evaluation

1.1. Increase performance visibility

1.2. Uncover and remove hidden waste and cost drivers in supply chain

1.3. Leverage the supply base

1.4. Align customer and supplier business practices

1.5. Mitigate risk

1.6. Improve supplier performance

2. Evaluation Strategy

2.1. Supply Base Segmentation

2.1.1. Strategic

2.1.2. Leverage

2.1.3. Bottleneck

2.1.4. Noncritical or commodity

3. Criteria for evaluation

3.1. Lagging Indicator

3.1.1. Account payable cycle

3.1.2. Quality metrics

3.1.3. Inventory turns

3.1.4. Scrap

3.1.5. Purchase orders processes per employee

3.1.6. Calls per customer service employee

3.2. Leading Indicator

3.2.1. Supplier performance problems

3.2.2. Customer satisfaction

3.2.3. Employee turnover at supplier

3.2.4. Number of supply chain alliances implemented

3.3. Objective or Quantitative

3.3.1. Transportation Costs

3.3.2. Scrap and rework

3.3.3. On-time delivery

3.4. Qualitative or Subjective

3.4.1. Customer complaints or Customer satisfaction

3.4.2. Deployment of business practices

3.5. Performance Expectation

3.5.1. Corporate Goals

3.5.1.1. Improving customer staisfaction

3.5.2. Corporate Strategy

3.5.2.1. Use of Six Sigma to uncover the causes of customer complaints

3.5.3. Procurement Strategy

3.5.3.1. Reduce supplier quality problems

3.5.4. Supplier Performance Expectation

3.5.4.1. Business Models

3.5.4.2. Value Stream Mapping

3.5.4.3. Business Drivers

4. Evaluation methods/approaches

4.1. PDF link

4.2. supplier evaluation should be balanced against risk

4.3. the organisations finance should be assessed

4.4. quality should be reviewed

4.5. performance

4.6. organisation capacity

4.7. human resource at the companies disposal

4.8. use of technology