1. Supplier Selection Training for Selecting the Right Supplier by Scott Mathusek 10 April 20101Supplier Selection

2. What will be covered Supplier Selection Defined Brainstorming Exercise Supplier Evaluation and Selection Process Real World Example Practice Exercise 10 April 20102Supplier Selection

3. 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 20103Supplier Selection

4. 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 20104Supplier Selection

5. 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 10 April 2010Supplier Selection5

6. Evaluation and Selection Process 5.Limit suppliers 6.Determine method of supplier evaluation and selection 7.Negotiate and select supplier 10 April 2010Supplier Selection6

7. Recognize Need for Supplier Selection Why are you looking for a supplier? –End of contract –Problems with current supplier –Have new product 10 April 2010Supplier Selection7

8. 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 2010Supplier Selection8

9. Carter’s 10 C’s of Supplier Selection Competency Capacity Consistency Control of Process Cost/Price 10 April 20109Supplier Selection Commitment to quality Cash/finances Clean Culture and relationships Communication

10. Determine Sourcing Strategy How many suppliers are you going to need? –Single Source –Multiple Source 10 April 2010Supplier Selection10

11. Identify Potential Supply Sources Where can you find your suppliers? Simple brainstorming activity will generate a long list of possibilities 10 April 2010Supplier Selection11

12. Limit Suppliers in Pool Narrow down your choices 10 April 2010Supplier Selection12 DBCEA 100% 75% 25% 33% 18% 31% 36% 40% 22% 43% 57%

13. 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 2010Supplier Selection13

14. Negotiate and Select Supplier Perform negotiations with supplier Choose supplier and agree to terms 10 April 2010Supplier Selection14

15. 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 10 April 201015Supplier Selection

16. 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 201016Supplier Selection

17. 10 April 2010Supplier Selection17 ABCD Competency 77907685 Capacity 85 90 Consistency 95869587 Control of Process 909590 Column1DannyRyanJaneHelenModeAverage Competency40%30%25%30% 31% Capacity30% 25%20%30%26% Consistency20% 25%30%20%24% Control of Process 10%20%25%20% 19%

18. 10 April 2010Supplier Selection18 MODEABCD Competency23.12722.825.5 Capacity25.5 27 Consistency1917.21917.4 Control of Process181918 Total85.688.785.387.9 AVERAGEABCD Competency24.128.123.826.6 Capacity22.3 23.6 Consistency22.620.422.620.7 Control of Process16.917.816.9 Total85.888.785.587.7

19. 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 201019Supplier Selection

20. Readings list All 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 201020Supplier Selection