Exam 8: Supplier Selection and Evaluation

Outsourcing can _______________ for a firm that would normally produce a part internally.

The advantages of multiple sourcing can be viewed as the disadvantages of single sourcing and vice versa. The best scenario would be one that can obtain the advantages of both.This might be done by applying significant pressure to single-source suppliers or by providing significant certainty to suppliers in a multiple-sourcing environment.This may be accomplished through the use of contract length. Short-term contracts regardless of single or multiple suppliers can be used as a source of punishment. In some instances, long-term contracts can be viewed as a reward.

The main arguments for __________ sourcing are competition and assured supply.

In collaboration, the two organizations truly realize the benefits of working together to optimize outcomes for both organizations. The two firms work together to develop a ___________ to deliver a high-quality product or service on time and under budget.

uyers should be experts ___________ and in specific _____________.

In addition to the strategic _________ profiles, the buying firm should clearly establish expectations for the strategic _________ and discuss future product and _______ development plans; this is typically done with an annual review period.

very strategic supplier also should have formal environmental, health, operational, and safety programs. In addition, they should put forth the effort to reduce, reuse, and recycle when possible. These categories, as well as others, should be used in the development of the questionnaire for each supplier.

________ approach can be used that is known as ____________. With this method, the supplier base is expanded without increasing the actual number of suppliers.

Performance-based evaluations assess the company at the time its product or service has been delivered.

The __________ method is probably the most commonly used evaluation method.

"Grade" methods are those that are based on a score or grade given to the supplier by the buyer for some attribute. The most common attributes are ______________________.

It is no easy task for management to decide to __________________ component parts and services.

_______________ and ______________ are necessary in order to keep costs down and create trust with strategic suppliers.

One model that explains supply chain relationship management includes which of the following behavioral dimensions?

There are two main categories of supplier evaluations, ___________________.

In general, the guiding factors in determining which system is best are ____________ and _______________ of the system.

Once the system is developed, it then forces the various functions in the buying firm to evaluate which suppliers truly add value. The rankings are aggregated to enable a ranking of all suppliers. The company will then categorize the suppliers into one of three categories:

Single sourcing advocates may want to address the following issues regarding long-term impacts of single sourcing. In the long-run, if everyone reduces their supplier base, there will be fewer suppliers to deal with and overall competition will decrease as there are fewer suppliers. A supplier consolidation will give suppliers less power in the long run.

The _________ evaluation is an assessment of the supplier's production or service process. ______________ evaluations are based on objective measures of performance.

The certification criteria can be changed and updated as recertification may be required. Thus, the "hurdle" can be lowered until there are a few suppliers left. In combination with certification are the price and productivity hurdles. OEMs can add these criteria to make it easier to be a "select" supplier.