1. ISSUES SURROUNDING SINGLE SOURCING OF SUPPLIERS

2. Lead times and on-time delivery Quality and quality assurance Flexibility Location Price Product or service charges Reputation and financial stability Other accounts Considerations When Choosing a Supplier

3. Evaluating Sources of Supply Vendor analysis: Evaluating the sources of supply in terms of price, quality, reputation, and service (add column for weights if appropriate).

4. Supplier Partnerships Ideas from suppliers could lead to improved competitiveness Reduce cost of making the purchase Reduce transportation costs Reduce production costs Improve product quality Improve product design Reduce time to market Improve customer satisfaction Reduce inventory costs Introduce new products or services

5. AspectPartner Adversary Number of suppliers One or a few Many, play off each other Length of relationship Long-term May be brief Low price Moderately important Major issue ReliabilityHighMay not be high OpennessHigh Low Quality Insured at the Source Buyer inspects Volume of businessHigh Depends on number of suppliers Location Proximity may be stressed Dispersed for short lead times Flexibility Relatively high Relatively Low Supplier as Partner

6. Supplier Audits Means of keeping current on suppliers’ performance Factors covered in an audit management style quality assurance materials management design process used process improvement policies procedures for corrective action and follow-up