vendor selection and development

8/9/2019 Vendor Selection and Development

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AQM

VENDOR SELECTIONAND DEVELOPMENT

Faculty In-charge Ms. SHIPRA SHARMADFT

Efrt! "y PRASHANT TYAGIPREYANSHU SOLANKI

DFTSEM V


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TRADITIONAL COMPETENCIES 2 NE3COMPETENCIES

OLD COMPETENCIES NE3 COMPETENCIES

Pri#e V%lue

Le%! Ti&e Servi#e

5u%li$ I"v%$i" 6 Ne( Pr"!u#$Devel"p&e$

Tr%s%#$i"%l Rel%$i" 7#le $i&e pr"!u#$i"

8ul1 Or!er S$r%$e2i# P%r$ership

Desi2 Or!er Fle9i*ili$


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e ac r! cn! ere e*a ua ethe ,unct%nal a!(ect! , Ven$rSelect%n

,. 7"s$ Ele&e$s

-. 7%p%#i$

:. MO5s

;. L%*"r S1ills 6 E3uip&e$s

. Dis$%#e

?. G"ver&e$ Re2ul%$i"s

@. P"li$i#%l/ E#""&i# Evir"&e$

,. 7SR/ S"#i%l Issues

,,. 7"&pe$i$i"

,-. Du$

,:. Spe#i%l Tr%!e A2ree&e$s


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Reta%ler! are l'%ng t r'$%ferently %th !u((l%er!

Tr%s%#$i"%lRel%$i"ships

S$r%$e2i#L"2 Ter&

Rel%$i"shipM%Ve!"r

Rel%$i"ships

7"s"li!%$e

! Ve!"r8%se

Fr%2&e$e!S"ur#i2

7"&&i$ $"l%r2e

v"lu&e

"r!ersNu&er"usS"ur#i2

Gre%$er "per%$i"eB#ie# 6)ull

p%#1%2e supplier


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4 3A5S TO IMPROVE VENDORSELECTION

STEP , C

I) pur#h%si2 !ire#$l )r"& $he &%u)%#$urer is

"$ p"ssi*le !ue $" % %ll"#%$e! le%! $i&e "r

% re%s" $he rs$ s$ep sh"ul! *e )ta%n%nga c(y , yur %n$e(en$ent $%!tr%)utr/!Cunter,e%t A*%$ance Plan.

D" "$ ev%lu%$e $he ee#$iveess ") %

#"u$er)ei$ &i$i2%$i" pr"2r%& uless i$ h%s

*ee (ri$$e i$" $he ISO pr"#e!ure.


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STEP - C

Create an %n-hu!e *en$r rat%ng !y!te&.

R%$i2 ss$e&s #% pr"vi!e % 3ui#1 %! e%ss%psh"$ ") his$"ri#%l pur#h%ses.

Si&ul$%e"us ev%lu%$i" ") v%ri"us ve!"rs #%

*e !"e * #"&p%ri2 &%"r p%r%&e$ers %!)%#$"rs resp"si*le )"r ve!"r sele#$i".

The rat%ng !y!te& 0u%c'ly all! tnarr the l%!t $n t the &!t rel%a)lean$ 0ual%ty-$r%*en !urce!6


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STEP : C

Qual%ty !ur*ey! are a )ene7c%al tl %n re*%e%ng a

ne !u((l%er/! ca(a)%l%t%e!6

The sh"ul! *e #"&prehesive e"u2h $" 2%i % 2""!u!ers$%!i2 ") % *en$r/! !trength! an$ea'ne!!e!6

I$ &% *e i % 3ues$i"%ire )"r&%$ %! )"#us " )"ll"(i2

< %re%s +

Pr"#ure&e$ #"$r"l

Re#eivi2 %! ispe#$i" #"$r"l I'pr"#ess ispe#$i" #"$r"l

P%r$s %! #"&p"e$ $e#hi#%l !%$% %!

Geer%l 3u%li$ #"$r"ls.


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STEP ; C

Pr*%$e *en$r! %th the%r !cre car$.

Ve!"r s#"re #%r!s %re "$ "l use! $" &e%sure % supplier4s

ee#$iveess *u$ %ls" %ll"( $he ve!"r $" u!ers$%! (h%$$heir s#"re &e%s %! h"( $" ele*ate the%r (er,r&ancean$ %ncrea!e the%r !cre ,r the ,ll%ng 0uarter6

STEP < C

7re%$e % #"#essi" )"r& (i$h "ur ve!"rs %#$u%ll $heve!"rs sh"ul! "er $his "p$i" rs$.

A #"#essi" )"r& is u$ili0e! )"r h%gh-le*el tran!(arency%ll"(i2 %ll 1e pe"ple $" )ull u!ers$%! $he %spe#$s ") p%r$s*ei2 pr"#ure! %! e9$ s$eps )"r i!e$i)i2 $he i$e2ri$ ")

$h%$ !evi#e.

Ven$r! that are un%ll%ng t (re!ent a tran!(arenta((rach t !uch cruc%al !urc%ng re0u%re&ent! aren/tthe )e!t 7t ,r a !ecure !u((ly cha%n an$ !hul$ )ecn!%$ere$ ,r re&*al6


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Ven$r !elect%n u!%ng a Strategy-Al%gne$ F#885 A((rach

The &%"ri$ ") $he e9is$i2 %ppr"%#hes "*$%ie!$heir "p$i&%l s"lu$i"s (i$h"u$ #"si!eri2 $heir $s(i$h $he s$r%$e2 ") $he r&.

This s$u! u$ili0es $he !u((l%er (!%t%n%ng&atr%+ &"!ie! )r"& $he (r$uct-(rce!!change &atr%+ t l%n' the ca(a)%l%ty ,!u((l%er! %th the re0u%re&ent! , thecu!t&er!$" i!e$i) $he !trategy al%gne$

cr%ter%a )"r ve!"r sele#$i"A )u00 )%#$"r r%$i2 ss$e& is $he use! $"

ev%lu%$e $he p"$e$i%l ve!"rs *%se! " $he $pe ")#"&p"e$s re3uire! * $he #us$"&ers.


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THE STRATEGY C ALIGNED VENDORSELE7TION 7RITERIA


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F#NDAMENTALS OF F#885 SET T1EOR5 I $his s$u! )u00 "pii"s e9presse! * Dec%!%n Ma'er!

%re represe$e! %s $ri%2ul%r )u00 u&*ers.

The re%s" ") usi2 $ri%2ul%r )u00 u&*ers is *e#%use su#hreprese$%$i"s %re e%s $" use.

Si#e li2uis$i# v%ri%*les %re "$ !ire#$l &%$he&%$i#%ll"per%*le $" #"pe (i$h $his !iB#ul$ each l%ngu%!t%c *ar%a)le%! a!!c%ate$ %th a ,u99y nu&)er #h%r%#$eri0i2 $he&e%i2 ") e%#h 2eeri# ver*%l $er&.

I Fu00 Se$ The"r cn*er!%n !cale! are a((l%e$ ttran!,r& l%ngu%!t%c ter&! %nt ,u99y nu&)er!6

TFN! O, I&(rtance 3e%ght! an$ Rat%ng!


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CASE ST#D5

A c&(any : h%s !e!i#%$e! i$s e"r$s si#e ;

.u'e)+e!> hea$!et!> car$ rea$er!> 'ey)ar$!> &%ce> #S"hu)!> !creen 7lter!> &u!e (a$! %! e$#. MP: MPEG, Au!i"Ler: pl%ers (ere $he e( %! &%i pr"e#$e! pr"!u#$s )"r#"&p% " - c&(any : a! l'%ng ,rrele*ant !u((l%er! $" i&ple&e$ $his $%s1. Ol $(" se&i'%sse&*lies ") MP: ee!e! $" *e "u$s"ur#e! i.e. electrn%c!an$ (la!t%c %n.ect%n se&i'%sse&*lies.

S" i $his 7%se S$u! e %llu!trate the *en$r !elect%n(rce!! , (la!t%c %n.ect%n !e&%-a!!e&)ly a! an e+a&(le.


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STEP ;

M%%2e&e$ %pp"i$s % !(ec%al c&&%ttee resp"si*le )"r sele#$i2$he *es$ suppliers )"r pl%s$i# ie#$i" se&i'%sse&*lies.

The #"&&i$$ee #"sis$s ") ve "B#ers )r"& v%ri"us )u#$i"%l!ep%r$&e$s (i$hi $he #"&p% i.e. the &anager , (r$uct%nD; the &anager , eng%neer%ng D?> the general &anager ,&ar'et%ng DB> the &anager , (urcha!%ng D> an$ the eng%neer

, re!earch an$ $e*el(&ent D46

A)$er $he ii$i%l s#reei2 pr"#esses : ve!"rs %re le)$ )"r )ur$herev%lu%$i" A, A- A:.

A, ' is $he e9is$i2 pl%s$i# #"&p"e$ supplier ") #%r! re%!ers.A- ' is % e( p"$e$i%l supplier h%vi2 $he &%u)%#$ure/servi#e his$"r

i #"&pu$ers #"&&ui#%$i"s %! #"su&er ele#$r"i#s.

A: C is %ls" % e( p"$e$i%l supplier h%vi2 " relev%$ his$"r ii!us$r *u$ h%vi2 % 2""! repu$%$i" i pl%s$i# ie#$i" %! se3ue$

)%*ri#%$i" i!us$ries.


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STEP ? The i&p"r$%#e e%ght! , %n$%*%$ual $ec%!%n &a'ers %re %ssi2e! * $he %l !e#isi"

&%1er.

D, J ,

D- J :

D: J ,

D; J -

D< J -

The use li2uis$i# (ei2h$i2 v%ri%*les %! $heir respe#$ive )u00 u&*ers )"r !e#isi" &%1ers$" %ssess $he i&p"r$%#e (ei2h$s ") $he su*'#ri$eri% $%*le - %! #ri$eri% $%*le :.

8%se! " $he %ssess&e$ v%lues $he )u00 (ei2h$s ") i!ivi!u%l su*'#ri$eri% %! #ri$eri% #%$he *e #"&pu$e! * usi2 $%*les - %! :.


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STEP B -7"&pu$e $he !e)u00ie! %! "r&%li0e! %22re2%$e! (ei2h$ v%lues ")i!ivi!u%l su*#ri$eri% %! #ri$eri% respe#$ivel $%*les - %! :.

STEP -Use $he li2uis$i# r%$i2 v%ri%*les $%*le , %! $heir respe#$ive )u00 u&*ers)"r !e#isi" &%1ers $" %ssess $he )u00 r%$i2s ") $he $hree %l$er%$ives (i$hrespe#$ $" e%#h su*'#ri$eri% %! $he #"&pu$e $he %22re2%$e! )u00 r%$i2 ")e%#h su*#ri$eri%.

T%*le ; prese$s $he #"&pu$e! resul$s ") su*'#ri$eri% 7,,


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STEP 4 -

7"&pu$e $he %22re2%$e! )u00 r%$i2 ") e%#h supplier'#ri$eri%#"&*i%$i" %! $he )"r& $he )u00 r%$i2 &%$ri9 $%*le


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The r%1i2 "r!er )"r $he $hree %l$er%$ive ve!"rs isA: A, %! A- he#e $he #"&&i$$ee sh"ul! i!e$i) A:%s $he *es$ ve!"r ") pl%s$i# ie#$i".


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VENDOR DEVELOPMENT

The s"ur#e !evel"p&e$ is i&p"r$%$ )"r %&(rt !u)!t%tut%n c!tre$uct%n %! 0ual%ty %&(r*e&ent.

S"ur#e !evel"p&e$ ee!s %re !epe!e$ " )%#$"rs su#h %s &%1e "r*u4 !e#isi"s %&"u$ ") su*'#"$r%#$i2.

I s"&e #%ses % *uer h%s $" #re%$e % s%$is)%#$"r supplier. Als" i)e9is$i2 suppliers #%"$ s%$is) % #"&p%4s ee!s % l"2i#%l%l$er%$ive is $" %$$e&p$ $" !evel"p % e( supplier.

SMALL S#PPLIER DEVELOPMENT

I$ &% *e %!v%$%2e"us $" e#"ur%2e s&%ll r&s s" %s $" u$ili0e $heservi#es ")$hene entre(reneur!6

S&all !u((l%er! ten$ t nee$ &re a!!%!tance *u$ pur#h%si2pers"el (h" h%ve $" (%$#h )"r %! !evel"p e( suppliers ! thatthe !&all un%t! are &re re!(n!%*e6

Here $he pur#h%se ") r%( &%$eri%ls %! s"&e$i&es #"su&%*le $""ls%$ #"&p%r%*le pri#es )"r l%r2e #"su&ers is % &%"r pr"*le&.


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VENDOR DEVELOPMENT

The s"ur#es ") suppl i)"r&%$i" %re +

7%$%l"2ueTr%!e "ur%ls

Tr%!e Dire#$"ries

Ne(sp%per A!ver$ise&e$s

Teleph"e !ire#$"r

G"ver&e$ Pu*li#%$i"s

Pu*li#%$i"s ") Is$i$u$i"s %! M%u)%#$urersAss"#i%$i"

I!us$ri%l A!ver$isi2 i#lu!i2 Dire#$ M%il

S%les&%4s visi$s

Tr%!e E9hi*i$s %! Te#hi#%l E9hi*i$i"s

I!us$ri%l Pr"!u#$ Fi!er


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S&e , the ty(%cal 0ue!t%n! the )uyer! !hul$ )e(!%ng hen un$erta'%ng a *en$r ca(a)%l%ty !ur*eyare

ill $he ve!"r #"&pl (i$h $he *uer4s 3u%li$ s$%!%r!s %!pr"#e!ures )"r i$e&s &%!e $" *uer4s !esi2 %! (ill pr"!u#e!r%(i2s " *uer4s )"r&%$ (he he re3ues$s i$

h%$ %re $he ve!"r4s ispe#$i" pr"#e!ures %! #"$r"ls

H"( )re3ue$l !"es he #%li*r%$e &%#hies pr"!u#$i" %! $es$

e3uip&e$ )"r &ee$i2 pri&%r e2ieeri2 s$%!%r!s

h%$ %re his pr"#e!ures ") i'pr"#ess ispe#$i" %! 3u%li$#"$r"l

h%$ is his pr"#e!ure )"r re#eivi2 ispe#$i"

h%$ is $he %$ure ") his pl%i2 s#he!uli2 %! ive$"r#"$r"l ss$e&

ill he )urish pri#e *re%1!"(s * #"s$ ele&e$s " 9e! pri#e#"$r%#$s

D"es he h%ve % "*e#$i" $" #"$r%#$i2 " "$her $h% % 9e!

pri#e *%sis


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REFERENCES

A((arel Merchan$%!%ng.F%*e 3ay! T I&(r*e Su((l%er Select%n C

pu*lishe! %r$i#le i SMT M%2%0ie Fe* -,: * 7hrisT"rri"i.

Ven$r Select%n In a M$%7e$ Re-)uyS%tuat%n #!%ng a Strategy-Al%gne$ Fu99yA((rach C pu*lishe! i I$er%$i"%l "ur%l ")Pr"!u#$i" Rese%r#h V"l. ;


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T1AN

5O#

vendor selection and development

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