To identify the importance of a particular purchase, it is important to
specify the different types of criteria on which suppliers can be evaluated
and gather data on existing and new suppliers so you can select the right
supplier for your needs.
To identify sources of supply that can meet an organization's current and
forecasted operational and strategic needs, it is important to evaluate
potential suppliers. The criteria on which potential suppliers are evaluated
and the depth of the supplier analysis are critical components of the
evaluation process. The buying organization could suffer serious loss in terms
of total cost and risk of supply if the suppliers are inadequately evaluated.
The evaluation process can be contracted or expanded depending on the
importance of the purchase to the organization, the availability of expertise
within the supply base, and the risk associated with acquiring the purchase in
In this course, you will explain the importance of the supplier evaluation
process. You will also identify the supplier evaluation process and the
criteria for evaluating suppliers. Finally, you will list the tools and
techniques used to evaluate suppliers.
After completing this course, you should be able to:
Explain the need for the supplier evaluation process.
Identify the supplier evaluation process.
Identify the criteria for evaluating suppliers.
List the tools and techniques used to evaluate suppliers.