Ranking Potential Suppliers

Ranking Potential Suppliers

 

During the first two stages of the acquisition process, need identification and description, it is important to establish which of the three levels of selection criteria are most relevant for the particular requirement.  This will not only assist in identifying potential suppliers but also in the evaluation of bids and ultimate supplier selection.  Letting suppliers know how bids will be evaluated and what weights will be used to compare competitive bids is considered good practice.  Thus, in the traditional context, quality might be assigned 60 points, price, 30 points, and delivery 10 points for a particular purchase.  Even in such a simple three-factor, no strategy, or level three consideration, judgment is required to establish three weightings and how to assign points for differing bids.  Because many procurement organizations use formal supplier performance evaluations for existing and new suppliers, the criteria used for selection and subsequent actual performance should be similar.  If more than one potential supplier is available, the supply professional ranking of each supplier in relation to one another and the selection interview will determine the best available source.