Vendor Selection Process Redesign Proposal For Procurement

Love, Skitmore, & Earl (1998) put forth the results obtained from consultants in the form of a table which help us in the selection of a procurement method according to the priorities of the client. Table 1 below shows the same.

As assessment is usually conducted at two phases in any project. (Burt, 2005) First it is conducted to

In this assignment I will be writing a formal report that will explain a typical procurement process, I will outline a variety of methods of supplier reimbursement and contract relationships; I will also outline the pros and cons of each contract type. As well as this, I will explain a typical supplier selection process through the use of Carters 10 C’s and a typical selection process model.

2. During elicitation process the user requirements are agreed upon and are clearly defined and expressed in natural language, unambiguous and easy to understand. The requirements, defines the characteristics or operational objectives of the project. During validation, the document reduces the potential for dispute between customer and contractor allowing changes, misunderstandings and problems to be worked out ahead of time, before design and implementation of the system occurs.

A vendor evaluation is completed after the delivery of the product/service is completed. This process makes it easy for the buyer to determine if the vendor adequately fulfilled their needs and if they will use the vendor for future purchases (Grewal, p. 215)

Vendor familiarity, technical capability and financial business stability would also be determined by performing a cost-benefit analysis. Meeting delivery, flexibility, quality and reliability, fair price, familiarity, and financial and business stability are all reflected in vendor cost and would be reflected in the cost-benefit analysis and will aid in the vendor selection process.

It is quite challenging to discuss about procurement management without stating the importance of its strategies. There are four main basic procurement strategies that serve different functions within a procurement management. To begin with, a “Partnership” strategy focuses mainly on constructing mutual commitment in long term relationship with suppliers. While a “Secure Supply” strategy aims to secure short and long term supply while reducing risk from suppliers. In addition, a “Category Management and E-Procurement solutions” serves as a tool to reduce logistic complexity, improve operational efficiency, and attempts to reduce the number of suppliers. Lastly, a “Competive Bidding” strategy emphasizes on obtaining the “Best Deal” for short term transactions with suppliers.(van weele) Each of these four strategies involves a unique purchasing methodology, which implies that the complexity is embedded in an individual strategic implication. Therefore, it requires different tools to accomplish the specific strategical characteristics. A business entity may need to support and execute procurement decisions with other strategic apparatus with analytical methods, including market analysis, uncertainty analysis, price forecasting, supplier relationship and along with others.(Harvard)

I would be interested in getting your thoughts. I can set up a meeting with procurement,

In an effort to support the ALPS sourcing strategy this procedure has been put into place to increase involvement of Procurement to collaborate with project engineers to identify suitable vendors to be utilized in the CAPEX sourcing process. Vendor selection is the responsibility of the Procurement department.

Our positions require us to gather documents and data from suppliers to set them up as approved vendors for clients. The process requires vendor vetting and

"Motores Reynosa has procedures to approve/update a new vendor . The process starts with WorkFlow (integrated with

In the implement section, we have three recommendations for this company. First, Company should find more suppliers. From the interview notes, we think that company orders are unreasonable since company’s large bulk orders are placed by Chinese suppliers, media material is bought from local suppliers, and rush orders are placed from California. Company should build a good business relationship with local Salt Lake City suppliers and buy rush order from them instead of California. Thus, company could save a lot of costs of shipping and time. We supposed that company bought rush orders from California because of two reasons: cheaper price and supply of goods in plenty. Cheaper price could be understanding easily that California suppliers accept

Finding a way to fairly evaluate each bid was needed. A Weighted Evaluation System was chosen. Four factors were used to evaluate the bids. They are: Performance & Quality, Service, Price (total cost of purchase determines the pricing factor) and Financing. By applying a value to each, a better evaluation of the bids can be made.

Price is the most important criterion in this award algorithm. The final decision on the award of the contract is based on price. Technical proposals are evaluated well before reviewing any cost proposals. The technical proposal is reviewed on a pass/fail basis typically. State DOT can also choose direct point scoring or adjectival ratings for the purpose of evaluation. In this case, RFP should mention the minimum score required for the proposal to be considered responsive (GDOT 2012). Technical proposals which meet the minimum proposed requirements are then taken forward and their price proposals for those are opened. The contract is then awarded to the proposer with the lowest price. This algorithm is

This is the phase where the requirements are noted, feedback regarding requirements are obtained from users