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Title: Suply Appraisal Process, main issues in Supply Positioning Model, Kinds of relationship and dimenson in Supplier Appraisal
Description: Suply Appraisal Process, main issues in Supply Positioning Model, Kinds of relationship and dimenson in Supplier Appraisal
Description: Suply Appraisal Process, main issues in Supply Positioning Model, Kinds of relationship and dimenson in Supplier Appraisal
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The Supplier Appraisal Process
Set supply targets
& priorities
Position the item
Analyse supply markets
Set item-specific supply strategy
(& desired supplier relationship)
1
Determine the criteria for supplier appraisal
2
Reassess overall
supply risk
3
6
Screen the potential suppliers
4
Research further information on suppliers
5
Weight the criteria & rate the suppliers
New supplier
contacts us
Undertake a SWOT analysis of shortlisted suppliers
7
Record the outcome on a supplier database
8
9
ITC
Identify potential suppliers
Review the outcome with the suppliers
Determine supplier development strategy
M5:U2:2
...
2-1
Your current supplier appraisal process
Steps in your current process
ITC
Differences with the steps outlined, and if
these will be maintained
M5:U2:2
...
3-1
The Supply Positioning Model
Helps you to:
Prioritise your time and effort when
appraising suppliers
Determine the focus of the supplier
appraisal
ITC
M5:U2:2
...
3-3
The Supply Positioning Model: 4 types of purchase items
H
M
Impact/
supply
opportunity/
risk rating
Bottleneck
Critical
Routine
Leverage
L
N
80% of items = 20% of value
20% of items = 80% of value
Expenditure
ITC
M5:U2:2
...
3-5
Action Point
2
...
Routine items:
Reason for placing it in this quadrant:
¨
¨
B
...
3-6
Action Point
2
...
Bottleneck items:
Reason for placing it in this quadrant:
¨
¨
D
...
3-7
The supplier-buyer
relationship
/ contract continuum
Spot
purchase
ITC
Regular
trading
Call-off
contracts
Fixed
contracts
Partnership
Joint
ventures
Internal
provision
M5:U2:2
...
4-1
Types of supplier relationships
Supplier
relationship
Which purchase
items
What you look for in your suppliers
Spot Purchase
Regular trading
Call-off
contracts
Fixed contracts
Partnership
Joint ventures
ITC
M5:U2:2
...
The Performance Equation
Performance
Evaluate the
supplier’s ability
to supply your
company
ITC
=
Capability
x Motivation
Evaluate the
supplier’s interest &
potential commitment
M5:U2:2
...
5-2
Action Point
2
...
5-3
Title: Suply Appraisal Process, main issues in Supply Positioning Model, Kinds of relationship and dimenson in Supplier Appraisal
Description: Suply Appraisal Process, main issues in Supply Positioning Model, Kinds of relationship and dimenson in Supplier Appraisal
Description: Suply Appraisal Process, main issues in Supply Positioning Model, Kinds of relationship and dimenson in Supplier Appraisal