Vendor selection

1. Supply Chain Management:
1.Vendor selection
2.Design collaboration
3.Procurement Process
4.Sourcing planning and analysis
PRESENTED BY
NARESH KUMAR N

3. Vendor Selection
The vendor selection process can be a very complicated and emotional
undertaking if you don't know how to approach it from the very start. Here
are seven steps to help you select the right vendor for your business.
This guide will show you how to analyze your business requirements,
search for prospective vendors, lead the team in selecting the winning
vendor and provide you with insight on contract negotiations
and avoiding negotiation mistakes.

4. 7’Steps of Vendor Selection

5.  Step 1: Define and analyze your business requirements
 Step 2: Identify third party vendor candidates
 Step 3: Develop evaluation criteria (with weighting)
 Step 4: Conduct Vendor Briefings
 Step 5: Evaluate Vendors and schedule demos
 Step 6: Complete vendor selection
 Step 7: Complete contracting with vendor

6. Design Collaboration (with Suppliers)
 It is crucial for a manufacturer to collaborate with suppliers during the
design stage if product costs are to be kept low.
 Working with suppliers can speed up product development time
significantly.
 Finally, integrating the supplier into the design phase allows the
manufacturer to focus on system integration, resulting in a higher quality
product at lower cost.
 Helps to reduce cost, improves Quality and reduce time to market.
Eg; Ford designed the car ‘THUNDER BIRD’ through suppliers involvement,
they not only manufactured the components, but also responsible for the
design. This allowed Ford to bring the New model to market with in 36
months of program approval..

7. Procurement
Process

8. The Procurement Process
Need
budget
Vendor
selection
decision
Post
purchase

10. Sourcing planning and
analysis

11. Sourcing Planning and Analysis