Supplier Evaluation

Supplier evaluation is a very important step to achieving long term relationship with suppliers. It also creates an understanding of what the supplier is truly capable of producing. Monzcka, Handfield and Giunipero (2016) mentioned that supplier selection in the past was narrowed down to three potential suppliers. From those three, the supplier with the lowest price was selected. This method did not guarantee the best product. This is the reason for the implantation of our new supplier evaluation process. We will analyze and strategically evaluate suppliers in order to become ISO9001 certified. The purpose of the new supplier evaluation process is to cut costs associated with supplier production problems and to understand the metrics when evaluating performance.

The first step to the evaluation process is to identify potential supply sources. Variables associated with this decision making process is cost, quality and performance. Buyers will do a preliminary evaluation of the potential suppliers using supplier websites and social media. Analyzing the track record of the potential suppliers is crucial in the selection process. Trade shows will also be utilized to create exposure to potential suppliers. Trade shows offer a wide range of suppliers in one location and will cut time and resources in the evaluation process. Another aspect to consider when selection the potential suppliers is a competitor. Monzcka, Handfield and Giunipero state that “Purchasing from competitors may limit information sharing between the parties. The purchase transaction is usually straightforward, and the buyer and seller may not develop a working relationship characterized by mutual commitment and confidential information sharing” (2016). This will also be evaluated when making our initial decision.

After identifying the potential suppliers the following ten supplier performance criteria’s will be evaluated:

* Management capability

* Employee capability

* Total Quality...