Question

Discuss the main steps (at least 5) to take when selecting a supplier and explain how to use at least one evaluation method.

Answer 1

In order to select the best supplier for our supply as well as value chain, we need to:

1. Assessing the needs of the company by determining the requirements and setting the criteria allows a company to make better decisions when they are faced with the decision to select the best possible supplier.

2. Calling for a bid from all the suppliers allow us to select the best possible fit for our targets, out requirements and our budgetary concerns when it comes to being able to handle the process of selection.

3. Conducting a market research allow us to understand the competition, what supply chain they are utilizing for their processes, the presence of different companies in the market as well as create an evaluation in the company's ability to add value to our supply chain.

4. Analyzing the work principles employed by the supplier, which includes their products, processes, certifications, and adherence to standards as well.

5. We can ensure quality offering by building better relationships with the suppliers, in the same respect we can say that companies that have a better reputation on the market should fare better on our list for consideration.

We can say that in order to select the best possible candidates we need to have a proper understanding of our own ends, hence there is a need to conduct a formative evaluation process of our own company in order to be able to generate the required values and metric for the process of being able to conduct supplier study.