What are the 4 key criteria in supplier selection? I think I maybe looking in the wrong section of my book so I'd just like to know what the 4 are so I can find them. Thank you.
You may find something in one of these sites.
http://www.google.com/webhp?source=search_app#q=criteria+in+supplier+selection
The 4 key criteria in supplier selection are typically considered in the context of procurement and supply chain management. They are:
1. Quality: This criterion refers to the supplier's ability to consistently deliver products or services that meet or exceed the buyer's expectations. Quality can be assessed through past performance, certifications, product samples, and customer reviews.
2. Cost: Cost is an important criterion as it directly impacts the buyer's profitability. It involves evaluating the supplier's pricing structure, payment terms, and overall value for money. Comparing different suppliers' prices and negotiating favorable terms can contribute to cost optimization.
3. Reliability: Aspects such as on-time delivery, order fulfillment rate, and responsiveness to changes and issues are considered under reliability. A dependable supplier should have a track record of delivering goods and services as promised, reliably meeting deadlines, and promptly addressing any problems that may arise.
4. Financial Stability: Evaluating the financial stability of suppliers helps determine whether they possess the necessary resources to support ongoing operations and sustain long-term relationships. This criterion involves examining the supplier's financial statements, creditworthiness, and overall business health.
To find more detailed information about the four key criteria in supplier selection, you may refer to relevant chapters or sections in your book that cover procurement, supply chain management, or purchasing strategies. Look for topics such as "supplier selection" or "vendor evaluation." Additionally, you can search for academic journals, industry reports, or reputable online resources that discuss supplier selection criteria in depth. Keep in mind that the specific details and order of importance may vary depending on the industry, organization, and specific procurement goals.