supplier evaluation

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supplier evaluation by Mind Map: supplier evaluation

1. goals of supplier evaluation

1.1. facility supply management

1.2. provide a basis to chose the right supplier(s)

1.3. efficiently prevent and control potential risks

2. evaluation strategy

2.1. different supplier apply different strategy

2.1.1. classify suppliers to group base according to Kraljic portfolio model(see the pic from the link)

2.1.2. this video answered the way to apply the suitable different model. Also there is an illusion from another link.

2.1.3. this article also explained how to react to the different types of supplier.

3. criteria for evaluation

3.1. evaluation criteria according to the chapter 7 of book "采购管理实务" (Liping Fu 2010 )

3.1.1. quality: P= qualification rate. M=qualified number N=sample number; refund rate is also a indicator to show the quality

3.1.2. delivery time

3.1.3. delivery quantity

3.1.4. working quality: delivery error rate; breakage rate.

3.1.5. price: take the average price and the lowest price as the reference

3.1.6. purchase cost level: refer to saving rate

3.1.7. creditability: the ratio of un-performed contracts to total contracts

3.1.8. flexibility: due to the changing condition, not easy to use any formula.

3.2. evaluation criteria according to Malaysia Wawasan Open University

3.3. According to NC state university:

3.3.1. quality level

3.3.2. willingness to change their products and services to meet your changing needs

3.3.3. quick response time in case of emergency, problem, or special request

3.3.4. communication skills/systems (phone, fax, e-mail, Internet)

3.3.5. correct quantity

3.3.6. on-time delivery

3.3.7. service level

3.3.8. price/cost of product

3.3.9. use of electronic data interchange (EDI)

3.3.10. willingness to share sensitive information

3.3.11. presence of certification or other documentation

3.3.12. flexibility to respond to unexpected demand changes

3.3.13. willingness to participate in your firm’s new product development and value analysis

4. evaluation method/approaches

4.1. Linear Weighting Models

4.1.1. Categorical Method

4.1.2. Kasilingam R.M, factor analysis approch

4.1.3. Analytic Hierarchy Process,AHP

4.2. Total Cost Approaches

4.2.1. The Cost Ra-rio

4.2.2. Activity Based Costing

4.3. Mathematical programming method

4.4. others

4.4.1. Case-Based Reasoning by Cook

4.4.2. Albino & Garavelli, NeuralNetworks

4.4.3. Weber & Desai, Data Envelopment Analysis,DEA

4.5. survey

4.6. score card

4.7. site visit

5. evaluation process

5.1. the picture is showing evaluation process

5.1.1. 1 analyze the competition environment

5.1.2. 2.To target the aim of the evaluation.

5.1.3. 3. to create the criteria for supplier

5.1.3.1. 1)performance of the supplier, 2)equipment management, 3)HR development, 4)quality control, 5)cost control, 6)technology development, 7)satisfaction from customers, 8)delivery agreement

5.1.4. 4.  to create an evaluation team

5.1.5. 5. to invite the supplier to participate

5.1.6. 6. to evaluate the supplier

5.1.7. 7. Implement the cooperation