Supply evaluation

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Supply evaluation by Mind Map: Supply evaluation

1. Goals of supplier evaluation

1.1. Keeping up the quality

1.1.1. Customer satisfaction

1.2. Improving the business

1.3. Support to the company

1.3.1. Ensuring the delivery

1.3.2. Outsourced expertise

1.4. Supplier evaluation is to find a capable and reliable suppliers


1.4.2. One of the most important processes performed by firms today

1.4.3. Successful selection can prevent later supplier- related problems

2. Evaluations strategies


2.1.1. 1. Establish Performance Indicators Vendors' trustworthy

2.1.2. 2. Classify Multiple Suppliers and Vendors Audit checklist/survey

2.1.3. 3. Devise an Evaluation Method Deciding and managing the vendors Selecting the size of the vendor according the company's need

2.1.4. 4. Determine Who's Calling the Shots Management of relationship between the supplier and the company

2.1.5. 5. Maintain Good Relationships The importance of cooperation and developing the relationships

2.1.6. 6. Decide When to Issue a Red Flag Working feedback system

2.1.7. 7. Cut Loose Weak Links Enhancing

3. Criteria for evaluation


3.1.1. Selection 1. Recognizing the need need exists to evaluate and select a supplier? 2. Requirements Quality Cost Delivery performance Technological Capabilities 3. Sourcing strategy Single source vs. multiple sources Short-term vs. long-term contracts Domestic vs. foreign supplier 4. Potential supply sources Background information, business environment and product information 5. Limit suppliers Purchasers often perform a first cut or preliminary evaluation of potential suppliers to narrow the list Time and resources prohibit in-depth evaluation of all suppliers Methods to reduce suppliers in the pool 6. Method of evaluation and selection Review supplier provided information Supplier visits Use of Preferred suppliers External or Third-party information Cross-functional teams often evaluate suppliers directly through on-site visits Selection of supplier Competitive Bid Negotiations Weighted factor approach Criteria most evaluations rate suppliers: Cost/price, Quality, Delivery

4. Evaluation methods/approaches

4.1. Obtaining the evaluation information

4.1.1. Questionnaire

4.1.2. Supplier Visit

4.2. Important factors to be considered

4.2.1. Commitment to quality

4.2.2. Cost-competitive

4.2.3. Communication

4.2.4. Timely service

4.2.5. Flexibility and special services

4.2.6. Market knowledge

4.2.7. Production capabilities

4.2.8. Financial stability

4.2.9. Logistics/Location

4.2.10. Inventory

4.2.11. Ability to provide technical assistant

5. 10 C's


5.1.1. 1. Competency.

5.1.2. 2.Capacity

5.1.3. 3. Commitment

5.1.4. 4. Control Process controlling and flexibility

5.1.5. 5. Cash Strong financial base?

5.1.6. 6. Cost Competitive price?

5.1.7. 7. Consistency Consistency production

5.1.8. 8. Culture Supplier and buyers culture compativle

5.1.9. 9. Clean Company's ethical, legality funded etc.

5.1.10. 10. Communication