Supplier evaluation Made by Mathieu Chuiton & Cécile Niquet

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Supplier evaluation Made by Mathieu Chuiton & Cécile Niquet by Mind Map: Supplier evaluation  Made by Mathieu Chuiton & Cécile Niquet

1. criteria for evaluation

1.1. For a new supplier

1.1.1. Main criteria Cost of raw matrial Quality of the supplier Respect of delivery dates

1.1.2. Other criteria Technical capacity of the supplier : his own development and study service? After sales service Financial position Production capacity (the quality of his equipment, the organization of production and the efficiency of its systems) Guarantee Adaptability (degree of flexibility provided by the supplier Localisation (in terms of logistics costs) Reputation

1.2. for the monitoring : they are different between all companies, they depends of the sector, products, ...

1.2.1. Key metrics Time On-time delivery Cycle time reduction Product development time Quality Quotations errors Incoming quality Warranty data Technology/innovation Innovative ideas Number of supplier partnerships Product development capabilities Cost Cost avoidance Inventory reduction Average cost per order

1.2.2. Lagging indicators : it's easy to calculate them. They are typically "output", it means that they appeared after an action.

1.2.3. Leading indicators are more predictive. They are hard to calculate and easy to influence them. example :

2. Evaluation strategy

2.1. Segment the supply base in order to evaluate differently the suppliers => which suppliers have to be measured and what level of evaluation is applied to the different segments ?

2.1.1. What kind of actions do we have to do for each segment?

3. Evaluation methods/approaches

3.1. Surveys and questionnaires in order to find out informations

3.1.1. Not really reliable but don't cost a lot of money

3.2. Scorecards

3.2.1. Maybe the most reliable and don't cost a lot of money but it's just data. Nobody can say if there is a problem which is not visible on scorecards

3.3. SIte visits

3.3.1. Can cost a lot if the person stay a long time in the company. It allows to see all problems in the supply chain or in the management

3.4. Audit

3.4.1. The most reliable : a person check everything in order to see what is wrong in the company

3.5. Other methods

3.5.1. Linear models weighting

3.5.2. Mathematical programming

3.5.3. Methods based on the total cost

3.5.4. Statistical / probabilistic models

3.5.5. Categorization's model

4. Goals of supplier evaluation

4.1. Improve the performance of the supplier

4.2. Have a background of relationships and performance with the supplier

4.3. Less time spent on quality audits

4.4. Managing supllier risks

4.5. Better co-ordination between the supplier and the company