procurement part two marketing logistics purchasing decision variables: how to rate suppliers

Procurement Part Two

Marketing Logistics

Purchasing Decision Variables: How to Rate Suppliers

Purchasing Decision Variables: How to Rate Suppliers

• Lead time and lead time variability.

• On-time rate.• Supplier’s inventory.• Ordering convenience.• Ability to expedite.• Downtime risks due to

vendor problems.• Product reliability, quality,

maintenance requirements.• Technical specifications.

• Technical/training services offered.

• Price competitiveness.• Sales representative(s).• Past experience with

vendor.• Reputation of vendor.• Financing.• Vendor flexibility.• Engineering/design

capabilities.

Supplying a Manufacturer

Supplying a Manufacturer

Procurement or Purchasing

Warehouse

Procurement or Purchasing

Procurement or Purchasing

Procurement or Purchasing

Lead time and lead time variability.

Procurement or Purchasing

On-time rate.

Procurement or Purchasing

Supplier’s inventory.

Procurement or Purchasing

Ordering convenience

Procurement or Purchasing

Ability to expedite.

Procurement or Purchasing

Downtime risks due tovendor problems.

Procurement or Purchasing

Product reliability, quality,maintenance requirements.

Procurement or Purchasing

Product reliability, quality,maintenance requirements.

15 pounds

12 inches

10-year service life

Technical specifications

Engineering/Design capabilities

Supplying a Manufacturer

• Technical, training services offered.

Supplying a Manufacturer

Price competitiveness.

$ Financing

Supplying a Manufacturer

Sales representatives.

Supplying a Manufacturer

Sales representatives.Past experience with vendor.

Supplying a Manufacturer

Sales representatives.Past experience with vendor.Reputation of vendor.

Supplying a Manufacturer

Sales representatives.Past experience with vendor.Reputation of vendor.Vendor flexibility.

Purchasing Decision Variables: How to Rate Suppliers

• Lead time and lead time variability.

• On-time rate.• Supplier’s inventory.• Ordering convenience.• Ability to expedite.• Downtime risks due to

vendor problems.• Product reliability, quality,

maintenance requirements.• Technical specifications.

• Technical/training services offered.

• Price competitiveness.• Sales representative(s).• Past experience with

vendor.• Reputation of vendor.• Financing.• Vendor flexibility.• Engineering/design

capabilities.

Go to Part Three