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![Page 1: Supplier Selection Training for Selecting the Right Supplier by Scott Mathusek 10 April 20101Supplier Selection.](https://reader036.fdocuments.in/reader036/viewer/2022062516/56649d9c5503460f94a855eb/html5/thumbnails/1.jpg)
Supplier SelectionTraining for Selecting the Right Supplier
by
Scott Mathusek
10 April 2010 1Supplier Selection
![Page 2: Supplier Selection Training for Selecting the Right Supplier by Scott Mathusek 10 April 20101Supplier Selection.](https://reader036.fdocuments.in/reader036/viewer/2022062516/56649d9c5503460f94a855eb/html5/thumbnails/2.jpg)
What will be covered
• Supplier Selection Defined
• Brainstorming Exercise
• Supplier Evaluation and Selection Process
• Real World Example
• Practice Exercise
10 April 2010 2Supplier Selection
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Supplier Selection Defined
• Supplier: “External entity that supplies relatively common, off the shelf, or standard goods or services” (Business Dictionary)
• Supplier Selection: “The stage in the buying process when the intending buyer chooses the preferred supplier or suppliers from those qualified as suitable.” (Westburn Dictionary)
10 April 2010 3Supplier Selection
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Brainstorming Exercise
• Why is supplier selection so important to your organization?
• What can result in your company from having the incorrect supplier?
• What is important to you when finding a supplier?
10 April 2010 4Supplier Selection
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Evaluation and Selection Process
1. Recognize the need for supplier selection
2. Identify key sourcing requirements
3. Determine sourcing strategy
4. Identify potential supply sources
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Evaluation and Selection Process
5. Limit suppliers
6. Determine method of supplier evaluation and selection
7. Negotiate and select supplier
10 April 2010 Supplier Selection 6
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Recognize Need for Supplier Selection
• Why are you looking for a supplier?– End of contract– Problems with current supplier– Have new product
10 April 2010 Supplier Selection 7
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Identify Key Sourcing Requirements
• What do you require from your suppliers?
• Are your requirements in alignment with company goals and mission?
• Consider Carter’s 10 C’s of Supplier Selection
10 April 2010 Supplier Selection 8
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Carter’s 10 C’s of Supplier Selection
• Competency
• Capacity
• Consistency
• Control of Process
• Cost/Price
10 April 2010 9Supplier Selection
• Commitment to quality
• Cash/finances
• Clean
• Culture and relationships
• Communication
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Determine Sourcing Strategy
• How many suppliers are you going to need?– Single Source– Multiple Source
10 April 2010 Supplier Selection 10
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Identify Potential Supply Sources
• Where can you find your suppliers?
• Simple brainstorming activity will generate a long list of possibilities
10 April 2010 Supplier Selection 11
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Limit Suppliers in Pool• Narrow down your choices
10 April 2010 Supplier Selection 12DB C EA
100%100%
75% 75%
25%25%
33%33%
18%18%31%31%
36%36%
40%40%
22%22%
43%43%
57%57%
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Determine Method of Supplier Evaluation and Selection
• Choose what you would like to evaluate
• Decide where you will gather your information from
• Make selection from your evaluations
10 April 2010 Supplier Selection 13
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Negotiate and Select Supplier
• Perform negotiations with supplier
• Choose supplier and agree to terms
10 April 2010 Supplier Selection 14
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MFG.com
• Moves to India to better position themselves as a buyer
• Looks to specifically increase competency, commitment to quality, and capacity and lower cost/price
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Practical Exercise
• You and three others have narrowed the search down to four companies
• Using Carter’s 10 C’s you have chosen four factors you will use to evaluate and have also assigned each factor a weighted percentage
• Perform a weighted factor analysis to decide which company to is the best option
10 April 2010 16Supplier Selection
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10 April 2010 Supplier Selection 17
A B C DCompetency 77 90 76 85
Capacity 85 85 85 90Consistency 95 86 95 87
Control of Process 90 95 90 90
Column1 Danny Ryan Jane Helen Mode AverageCompetency 40% 30% 25% 30% 30% 31%
Capacity 30% 30% 25% 20% 30% 26%Consistency 20% 20% 25% 30% 20% 24%Control of
Process 10% 20% 25% 20% 20% 19%
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10 April 2010 Supplier Selection 18
MODE A B C DCompetency 23.1 27 22.8 25.5
Capacity 25.5 25.5 25.5 27Consistency 19 17.2 19 17.4
Control of Process 18 19 18 18Total 85.6 88.7 85.3 87.9
AVERAGE A B C DCompetency 24.1 28.1 23.8 26.6
Capacity 22.3 22.3 22.3 23.6Consistency 22.6 20.4 22.6 20.7
Control of Process 16.9 17.8 16.9 16.9Total 85.8 88.7 85.5 87.7
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Summary
• The evaluation and selection process is much based off of company goals, missions, and preferences
• Use Carter’s 10 C’s to have a more encompassing evaluation
10 April 2010 19Supplier Selection
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Readings listAll information used for this presentation is based from information from the following sources:
• Fuller, Neil. “How Many C’s in Partner?” All Business. Supply Management, 8 Sept. 2005. Web. 5 April 2010.
• Hadaway, Jordon. “Supplier Selection.” 12Manage The Executive Fast Track. 12Manage. 6 January 2010. Web. 7 April 2010.
• “Home: Sourcing Platform MFG.com Launches India Operations.” NetIndian, 3 April 2010. Web. 8 April 2010.
• “Supplier.” Business Dictionary. Online Business Dictionary, 2010. Web. 5 April 2010.
• “Supplier Selection.” Westburn Publishers. The Westburn Dictionary of Marketing, 2002. Web. 5 April 2010.
• Oxenbury, Alan. “Making the Right Choice.” Supply Management. Supply Management, 20 July 2006. Web. 6 April 2010.
• Oxenbury, Alan. “The Final Countdown.” Supply Management. Supply Management, 3 August 2006. Web. 6 April 2010.
• Wallin, Cynthia. “Supplier Selection.” Brigham Young University. Microsoft PowerPoint file. 9 February 2010.
10 April 2010 20Supplier Selection