Supplier Evaluation

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Supplier Evaluation by Mind Map: Supplier Evaluation

1. Criteria for evaluation

1.1. Delivery

1.1.1. On-time

1.1.2. Right items

1.1.3. Right quantities

1.1.4. Accurate documentation

1.2. Customer service

1.2.1. Market insight

1.2.2. Invoicing efficiency

1.2.3. Technical emergency support

1.2.4. Communication

1.3. Quality

1.3.1. Warranty coverage

1.3.2. Product reliability

1.3.3. Product instructions

1.3.4. Product packaging

1.3.5. Environmental issues

1.3.6. Commitment (staff, management)

1.3.7. Use of ISO 9000 criteria

1.4. Pricing

1.4.1. Price accuracy

1.4.2. Competitive pricing

1.4.3. Advance notice of price changes

1.5. Competency

1.5.1. Meeting company's requirements

1.5.2. Earlier feedback

1.5.3. Performance visibility

1.5.4. Long-term relationship potential

1.6. Capability

1.6.1. Technical capabilities

1.6.1.1. CAD capability

1.6.1.2. Use of bar coding, RFID

1.6.2. Management capabilities

1.6.2.1. Long-range planning

1.6.2.2. Continuous improvement

1.6.2.3. Management turnover

1.6.2.4. Organization's vision

1.6.3. Employee capabilites

1.6.3.1. Commitment

1.6.3.2. Skills and abilities

1.6.3.3. Workforce turnover

1.6.3.4. Safety and training

2. Evaluation methods

2.1. Categorical method

2.2. Cost-ratio method

2.3. Weighted-point method

3. Goals of supplier evaluation

3.1. to eliminate hidden cost drivers

3.2. to minimize risk

3.3. to create an appropriate supply chain

3.4. improve performance of key suppliers

3.5. to get better visibility into supplier performance

3.6. to increase competitive advantage

3.6.1. by reducing order cycle times and inventory

3.7. to get the best use of automation and technology

4. Evaluation strategy

4.1. Single vs. multiple sourcing

4.2. Short-term vs. long-term contracts

4.3. Design support vs. operational support

4.4. Full service vs. non-full-service suppliers

4.4.1. what the company wants/expects

4.5. Domestic vs. international suppliers

4.5.1. location issues

5. Evaluation approaches

5.1. Statistical models

5.2. Linear weighting models

5.2.1. divides the given criterias by the importance

5.3. Total cost of ownership models

5.3.1. calculates the total costs

5.4. Mathematical programming models

5.5. Artificial intelligence based models

5.5.1. computer system based on old data information

6. References

7. Evaluation tools

7.1. Scorecards

7.2. Site visits

7.3. Questionnaires

7.3.1. RFI survey

7.3.2. Quality survey

7.3.3. Supplier survey

7.4. Third party certification standards

7.4.1. ISO 9000

7.5. Supplier evaluation softwares

7.6. Supplier audits

7.6.1. Specialist(s) visits the supplier once in a while and measures their work