The activities associated with discovering, evaluating and selecting potential suppliers. For each potential supplier a supplier profile is developed to enable data-driven decisions. This may include benchmarking suppliers and pre-qualifying selected potential suppliers. Selected potential suppliers are invited to participate in the Tendering and/or Negotiation processes.
Sources of potential suppliers include:
- Company supplier records - current and past suppliers
- Industry organizations, registers and directories
- Catalogs, internet and trade journals
- Internal suppliers (vertical integration)
Depending on strategic importance, value of purchase and complexity, supplier selection and pre-qualification may include analysis of:
- Financial risks - Liquidity, Profitability, Long-term financial strength
- Operational risks - Resilience, Contingency planning
- Delivery performance - Lead time, Quality, On-time
- Capacity and flexibility
- People risks - Management, key staff and skills retention
- Diversity and ethical considerations
Other emerging or industry-specific areas of analysis include: Environmental, single vs. multi-sourcing, capacity share.
|S004||Identify Supply Sources||3||S004|
|DPL||Denied Party List||DPL|