Evaluation and Selection of Suppliers in Supply Chain Management

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CASE STUDY
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Table of Contents
INTRODUCTION 3
MAIN BODY 3
CONCLUSION 11
REFERENCES 12
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INTRODUCTION
Supply chain management is a process which needs to be effectively carried out by the
concerned manager. Suppliers are the most important stakeholder for a manufacturing
organization, therefore evaluation and selection of suppliers is the process which needs to be
carried out with effective and efficient people within the organization. The evaluation and
selection of suppliers are done by following various major steps. Deere and Company is an
American manufacturing giant that is headquartered in Moline, Illinois (Beske, 2012). The
company has a history of more than 150 years, and its portfolios are comprised of
manufacturing, distribution, financing as well as servicing of agricultural, construction and
forestry equipment. The company is having around 38,000 employees around the world with its
existence in more than 160 countries around the world in an effective manner. Under the current
report, a discussion will take place on various aspects of evaluation and management of the
whole supply chain in one of the new worksite production opened up by the company
MAIN BODY
Following every step of input, process, and output
The evaluation of the supplier has to go through a rigorous process which involves many
steps from identification to continuous improvement. As a supply chain manager of the
company’s new production unit, I will be responsible for carrying out various kinds of steps for
the purpose of supplier evaluation as well as selection in an effective manner; these steps are
discussed as follows:
Identification of supplier evaluation categories
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Under this, a supplier survey needs to be developed by deciding the categories that need
to be included. There are various kinds of categories on the basis of which the supplier can be
judged, some of these categories are quality, management capabilities, financial condition, etc.
These categories can be selected by a purchaser for the purpose of evaluating suppliers. On the
basis of these parameters, a supplier can be judged in an effective manner (Beske & Seuring,
2014). These categories will certainly put light on the various performance areas that are
considered important by the purchaser in an effective manner.
Assigning a weight to each category
Once the main categories on the basis of which, suppliers will be evaluated are decided,
the next step is to assign weight to each category. The weight is being assigned for the purpose
of reflecting the importance of each category. The total or combined weight should be equal to 1.
For example, the quality system will get a weight of .20 or 20 percent; system capabilities will
get a weight of .5 percent. The most important things are to remain flexible while assigning
weight and selecting categories for evaluation in an effective manner (Bichou, 2015). Stage 2
indicated expansive execution classifications. Stage 3 of this procedure requires recognizing any
execution subcategories, if at all that they exist, inside each more extensive execution class. For
instance, the quality frameworks class may require the distinguishing proof of discrete
subcategories. If so, the provider assessment should include any subcategories or things that
make up the quality frameworks class.
Identification and weighing subcategories
Similarly vital, the buyer must choose how to weigh each subcategory inside the more
extensive execution assessment classification. The entirety of the subcategory weight must be
equivalent to the all-out weight of the performance categories. Moreover, the buyer should
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