Procurement Part Two Marketing Logistics Purchasing Decision Variables: How to Rate Suppliers.

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Presentation transcript:

Procurement Part Two Marketing Logistics

Purchasing Decision Variables: How to Rate Suppliers

Lead time and lead time variability. On-time rate. Supplier’s inventory. Ordering convenience. Ability to expedite. Downtime risks due to vendor problems. Product reliability, quality, maintenance requirements. Technical specifications. Technical/training services offered. Price competitiveness. Sales representative(s). Past experience with vendor. Reputation of vendor. Financing. Vendor flexibility. Engineering/design capabilities.

Supplying a Manufacturer

Procurement or Purchasing Warehouse

Procurement or Purchasing

Lead time and lead time variability.

Procurement or Purchasing On-time rate.

Procurement or Purchasing Supplier’s inventory.

Procurement or Purchasing Ordering convenience

Procurement or Purchasing Ability to expedite.

Procurement or Purchasing Downtime risks due to vendor problems.

Procurement or Purchasing Product reliability, quality, maintenance requirements.

Procurement or Purchasing Product reliability, quality, maintenance requirements. 15 pounds 12 inches 10-year service life Technical specifications Engineering/ Design capabilities

Supplying a Manufacturer Technical, training services offered.

Supplying a Manufacturer Price competitiveness. $ Financing

Supplying a Manufacturer Sales representatives.

Supplying a Manufacturer Sales representatives. Past experience with vendor.

Supplying a Manufacturer Sales representatives. Past experience with vendor. Reputation of vendor.

Supplying a Manufacturer Sales representatives. Past experience with vendor. Reputation of vendor. Vendor flexibility.

Purchasing Decision Variables: How to Rate Suppliers Lead time and lead time variability. On-time rate. Supplier’s inventory. Ordering convenience. Ability to expedite. Downtime risks due to vendor problems. Product reliability, quality, maintenance requirements. Technical specifications. Technical/training services offered. Price competitiveness. Sales representative(s). Past experience with vendor. Reputation of vendor. Financing. Vendor flexibility. Engineering/design capabilities.

Go to Part Three