Supplier Evaluation *Slide 9: Finance - industry specific figures (turnover) - market share for indicating purchasing power -->

need a benchmark to consider inudstry specific data - corporate capital = financial strength of the supplier *Slide 10: final step Supply requirements from our need analysis External data: cannot be in fluenced, connot be used as an assessment criteria for supplier, what is the supplier willing to do in the supply market we are in (e.g. in germany how to bring down costs, willing to discuss with the purchase company) or e.g. global sourcing is the supplier willing to help with logistics? Supplier self-assessment: all the data transferred to supplier-selection Check Requrementsto be fulfilled by suppliers *Slide 11: Last point (81%) sounds good but wont work *Slide 14: X1 is must have final exam X2 is good to have Supplier assessment is not once, its re-done Monopolistic behavior of supplier: What kind of aspects are important when supplier shows monopolistic behavior of supplier? Reliability is the most important point, as for performance or delivery too make sure to get the product we negotiated Fixed price, price security because supplier wants to increase prices Chance of customer requirements Information requirements, (directly communicate to the procurement department, directly inform the supplier), we need to know if supplier can react (willingness to solve problems / willingness to provide information)

market information *sales person of the supplier knows also about market conditions due to other clients and can provide valuable information short production time, short development time to react when market changes or may be quality level, when customers demand cheaper price (reduce quality) or demand higher quality, can suppliers adjustability of performance ? Procurement failure Willingness to solve problems cooperation spirit within the relationship~! Service capacity anything what makes life easier for the purchaser Quantity requierements flexibility, if supplier can react to new conditions Performance-related discounts: if supplier is willing to adapt to our changes, we can pay an extra price! Additional financial resources Information requreiemtns Come back to if conditions in the final exam Consequences of strategies on assessment criteria always choose if conditions which are not very similar (e.g. single sourcing vs JIT ) Examples should not be based on the same criteria ! dont use always the same arguments