Supplier Selection:

Find and Keep the

Right Supplier
What is Supplier
Selection?

Supplier selection is the process of choosing which

prospective vendor or supplier should an
organization get into business with. One of the
primary goals of supplier selection is to establish a
mutually-beneficial business-to-business relationship
with a reliable supplier that provides the most value
for money.
What is the
Importance of
Supplier Selection?

Supplier selection is an important process that sets a

foundation for a long-term business-to-business
partnership with suppliers that can greatly contribute to
the success or failure of a business.

Done right, supplier selection can help bring about the

most value for money for a business or a commissioning
plan that aims to maximize its resources and efficiently
operate in order to optimize profitably.
What are the
Stages of
Supplier
Selection?
 What are the Stages of Supplier Selection?

Meet the
STAGE 4 Suppliers

Draft,
Negotiate,
List Potential
STAGE 2 STAGE 5 and Sign the
Suppliers Contract

Determine Maintain a
your Supplier Good
STAGE 3 STAGE 6
Selection Relationship
Criteria with Suppliers

Stage 1: Identify Business Needs

Identify what your business needs

in order to produce its products or
provide the services that it offers.
Stage 2: List Potential Suppliers

Come up with a list of your

potential suppliers after you
have identified your business
needs.
 Create a list that spells out what you
Stage 3: Determine your want and what the business expects
Supplier Selection Criteria from a supplier in order to help
narrow down your supplier choices

CRITERIA 1 CRITERIA 4
Quality and safety of products Reliability

CRITERIA 2 CRITERIA 5
Flexibility Cost

CRITERIA 3 CRITERIA 6
Delivery Quality of service
 Stage 4: Meet the Suppliers

Once you have made a shortlist, arrange a meeting

with the potential suppliers and ask if they can do
a presentation of their products and demo how
they supply their customers.

 Stage 5: Draft, Negotiate,

and Sign the Contract

This is the conclusion of your supplier selection process

that began with identifying your business needs from
suppliers, getting to know suppliers, and selecting from
a shortlist of potential suppliers.
 Stage 6:Maintain a Good
Relationship with Suppliers

Once suppliers have been selected and orders have been

made, how do suppliers and businesses keep a mutually-
beneficial, long-term, business-to-business relationship
 See you next
week for your
MIDTERM EXAM!