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Step To Building The Supply Base

Supplier evaluation involves finding potential suppliers and determining their likelihood of becoming good suppliers. The buyer works with suppliers to ensure they understand quality, specifications, schedules, and policies. Contracts are designed to share risks and benefits between buyers and suppliers to incentivize optimal supply chain policies.

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Ari Ka
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133 views3 pages

Step To Building The Supply Base

Supplier evaluation involves finding potential suppliers and determining their likelihood of becoming good suppliers. The buyer works with suppliers to ensure they understand quality, specifications, schedules, and policies. Contracts are designed to share risks and benefits between buyers and suppliers to incentivize optimal supply chain policies.

Uploaded by

Ari Ka
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Building the Supply Base

1. Supplier Evaluation 2. Supplier Development

Supplier Evaluation involves finding potential The buyer makes sure the supplier has an appreciation
suppliers and determining the likelihood of their of quality requirements, product specifications,
becoming good suppliers. schedules and delivery, and procurement policies.
Building the Supply Base
3. Negotiations 4. Contracting

• Cost-Based Price Model Contracts are designed to share risks, share benefits,
and create incentive structures to encourage supply
• Market-Based Price Model
chain members to adopt policies that are optimal for
• Competitive Bidding the entire chain.
Building the Supply Base
Centralized Purchasing E-Procurement

Companies with multiple facilities must determine E-procurement speeds purchasing, reduces costs, and
which items to purchase centrally and which to allow integrates the supply chain.
local sites to purchase for themselves.

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