Supplier Selection

Question 1

What is a supplier?

Answer 1

A supplier is a person or organization that receives a request and provides an input to a process.

Examples of inputs include components, materials, products, and services.

Question 2

What are the two types of suppliers?

Answer 2

Internal and external.

Question 3

What separates internal and external suppliers?

Answer 3

Organizational boundaries.

Question 4

How can suppliers impact an organization?

Answer 4

Suppliers can have a direct impact on the processes used to build a product or service as well as on the product or service itself.

Question 5

What should organizations do when selecting suppliers?

Answer 5

Organizations should always select suppliers that meet rigorous, documented selection criteria.

Question 6

What are some typical criteria for supplier selection?

Answer 6

Typical criteria include:
* Total cost
* Previous experience
* Capability to meet requirements
* Quality management system
* Culture of continual improvement
* Progress capability
* Financial stability

Question 7

What are some methods to evaluate potential suppliers?

Answer 7

• Requesting a formal quote
• Onsite pre-award visit
• Sending a supplier quality assurance survey to complete
• Supplier financial statements
• Their quality manual and certification
• Discuss the supplier with other organizations that use them

Question 8

What happens once a supplier is approved?

Answer 8

They may be placed into an initial performance rating level like Approved for Use, Preferred for Use, or Certified for Use.

Question 9

What is the first step after establishing supplier selection criteria?

Answer 9

Evaluate how well each potential supplier meets those criteria.

Question 10

What are some common methods to evaluate suppliers?

Answer 10

• Obtaining Dun & Bradstreet or other available financial reports
• Requesting a formal quote, which includes providing the supplier with specifications and other requirements
• Visits to the supplier by management and/or the selection team
• Confirmation of quality system status either by on-site assessment, a written survey, or request for a certificate of quality system registration
• Discussions with other customers served by the supplier
• Review of databases or industry sources for the product line and supplier
• Evaluation of samples obtained from the supplier