Supplier Selection and Evaluation

The assignment discusses the importance of carefully selecting and evaluating suppliers in a business context. It identifies key factors to consider during the supplier selection process, including their design capabilities, quality and reliability, services and cost, location, financial condition, and willingness to share information. The analysis concludes that considering these factors is crucial for completing projects on time and successfully managing supply chain operations.

QUESTION 1

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
QUESTION 1..................................................................................................................................1
Factors need to be considered by MODNL while qualifying and selecting suppliers................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Selection of good purveyor is crucial task, effective assortment aids in minimising risk and
gaining higher profit to business (Dargi and et.al, 2014). Present study is based on procuring
textiles made from recycled fibres project. Report will analyse various factors that need to be
considered by MODNL (Ministry of Defence of the Kingdom of the Netherlands) while
selecting suppliers.
QUESTION 1
Factors need to be considered by MODNL while qualifying and selecting suppliers
Vendor selection process is time consuming process and directly impact on overall
profitability of organisation to great extent. There are several factors that need to be considered
when qualifying or selecting the potential suppliers. These are described as below:
Process of design capabilities: It is very important for MODNL that to ensure abilities of vendor
whether they have adequate knowledge or not (Rezaei, Fahim and Tavasszy, 2014). Apart from
this, authorities have to analyse their process techniques. Both these things can help in selecting
the most deserving and experienced supplier who can deliver high quality raw material to the
organisation. By selecting qualifying suppliers product development time can be reduced.
Quality and reliability: It is another important element that can directly impact on overall quality
of finished goods. Before selecting purveyor, MODNL has to ensure that whether delivery lead
time of purveyor is reliable or not otherwise production of procuring textiles made from recycled
fibres may get affected because of shortage of raw material (Mohammaditabar, Ghodsypour and
Hafezalkotob, 2016).
Services and cost: both these are important considering points, it needs to be ensured that unit
price of material remain in budget and suppliers take responsibility of their delivered material.
Purveyor must respond to warranty on timely basis.
Location: If raw material is being supplied from outside location then it may impact on delivery
timing and can enhance overall cost of project because logistics and transportation cost will
enhance expenditures. MODNL has to selects such suppliers those who are located within certain
distance so that they can deliver raw material for procuring textiles within specified period (Wu
and et.al, 2016).
Financial condition: It is another essential component that can impact on overall success of
project to great extent. MODNL’s evaluator team members have to look upon financial ratios of
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vendors. This can support in identifying whether supplier has capability to invest or not, by this
way entity can measure the reliability of purveyors (Supplier selection and evaluation, 2018).
Willingness to share information: Authorities are required to consider this essential element,
they have to ensure willingness of particular suppliers to share information about process and
services of company. It might be possible that vendors make changes in its process design and
technologies then such kind of situation can hamper working of buyer thus, purveyors have to
share all necessary information with consumers so that consumers can make proper decision of
buying martial (5 factors to consider before choosing the right supplier, 2018). If suppliers do
not share such kind of details then it might create difficulty in completing project within
specified period. Thus, MODNL has to emphases on willingness of suppliers to share
information significantly.
CONCLUSION
From the above study it can be concluded that selection of purveyors needs to be done
carefully, otherwise company might get failed to finish its project on time. Location, financial
capability, quality aspects need to be considered so that entity can complete the project within
specified duration.
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REFERENCES
Books and Journals
Dargi, A. and et.al., 2014. Supplier selection: A fuzzy-ANP approach. Procedia Computer
Science. 31. pp.691-700.
Mohammaditabar, D., Ghodsypour, S. H. and Hafezalkotob, A., 2016. A game theoretic analysis
in capacity-constrained supplier-selection and cooperation by considering the total supply
chain inventory costs. International Journal of Production Economics. 181. pp.87-97.
Rezaei, J., Fahim, P. B. and Tavasszy, L., 2014. Supplier selection in the airline retail industry
using a funnel methodology: Conjunctive screening method and fuzzy AHP. Expert
Systems with Applications. 41(18). pp.8165-8179.
Wu, Y. and et.al., 2016. Supplier selection in nuclear power industry with extended VIKOR
method under linguistic information. Applied Soft Computing. 48. pp.444-457.
Online
5 factors to consider before choosing the right supplier. 2018. [Online]. Available through <
http://www.melwire.com/5-factors-to-consider-before-choosing-the-right-supplier/ >
Supplier selection and evaluation. 2018. [Online]. Available through <
https://procurementmanagement.pressbooks.com/chapter/supplier-selection-and-
evaluation/ >
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