Key Supplier Selection Criteria For Suppliers

1501 Words7 Pages
5. Key Supplier Selection Criteria Initially, the selection of suppliers is based on a set of predetermined requirements or criteria and allows through a process of elimination, a shortlist of candidates to be establish, with which negotiations can be commenced. Additionally, it is important that the selection process holds up to scrutiny from other interested parties, by using well documented processes (O’Brien 2009). In the case study, the sourcing strategy emphasised that the components required robust supplier relationships to be established and that market competitiveness relies on the development of appropriate criteria for supplier selection (Lekurwale, Akarte & Raut 2015, p.565). To evaluate supplier capabilities, criteria must be determined, the importance of each established and ratings applied by qualified personnel. Consequently, by combining criteria ratings and weights, qualitative assessments can be given quantitative values, to establish supplier capabilities (Lekurwale, Akarte & Raut 2015, pp.570-571). As previously discussed in the case study, the Malaysia car manufacturer PROTON uses the evaluation of selection criteria, as a tool to develop suppliers’ capabilities, to enhance their ongoing relationship (Abdullah & Maharjan 2003, p.78). The TPS requires stringent supplier selection criteria to maintain its effectiveness and in addition suppliers need to adopt Toyota’s management philosophies. Specifically, these include positive employee relations, focus
Open Document