Page 98 - DMGT525_MATERIALS_MANAGEMENT

Ginni Nijhawan, Lovely Professional University
Unit 7: Selection of Suppliers

Unit 7: Selection of Suppliers Notes

CONTENTS
Objectives
Introduction

7.1 Suppliers Selection
7.1.1 Survey Stage
7.1.2 Enquiry Stage

7.1.3 Negotiation and Selection Stage
7.1.4 Experience Stage
7.2 Vendor Rating
7.2.1 Vendor Rating Techniques
7.2.2 Total Cost of Ownership Approach

7.2.3 Weighted Point Method
7.2.4 Cost-based System
7.2.5 Categorical System

7.2.6 Frequency of Assessment
7.2.7 How Measurements are Used
7.3 Vendors Development
7.4 Vendors Relationship
7.5 Summary

7.6 Keywords
7.7 Review Questions
7.8 Further Readings

Objectives

After studying this unit, you will be able to:
 Explain the Concept of Suppliers Selection
 Discuss Vendor Rating and Its Techniques
 Explain Vendors Development

 Discuss the Vendors’ Relationship

Introduction

In the previous unit we dealt with the concept of Supply Chain Management (SCM). The unit
also discussed about the implementation of SCM principles within a company. This unit will
help you to explain vendor rating and selection of suppliers. The various section and sub section

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