Selecting the right supplier could mean the difference between an organization
being able to execute its strategic goals and facing dissatisfied customers
and stakeholders because of bottlenecks in its supply chain. Understanding the
supplier selection methods will help you in selecting the right suppliers for
Supplier selection is a crucial stage of the effective supply process. In this
stage, an organization decides how much volume it should allocate to a
supplier. Selecting the wrong supplier has major implications, such as the
supplier’s inability to meet short-term needs on price, delivery, or cost. In
the long term, the wrong supplier would be unable to meet the organization’s
strategic goals for quality or collaboration. Ultimately, a poor buyer-
supplier fit can result in bottlenecks through the supply chain as well as
As a supply chain professional, it is important to select the right supplier.
Most importantly, it is important to rate suppliers on their ability to enable
your organization to attain its goals. By understanding how to formally rate
them—with a few quick questions or a complex rating scheme—you can drive the
scope of the selection process and suggest whether a team, rather than an
individual, would be better suited to handle the selection process.
In this course, you will examine the different supplier selection methods
available and determine the rationale for applying each method in different
scenarios. You will also review how cross-functional teams enable the supplier
After completing this course, you should be able to:
Identify the priority of the decision criteria and the supplier selection methods.
Determine the appropriate supplier selection method for a given scenario.
Describe how cross-functional sourcing teams support supplier selection.