The Procurement and Supply Managers Desk Reference Second

* The Procurement and Supply Manager’s Desk Reference Second Edition Chapter 4 Supplier Selection Criteria

* 1. Selecting the supplier 2. Operational Measures and Measures of Efficiency 3. Applying Selection Criteria 4. Other considerations Copyright (c) 2012 by John Wiley & Sons, Inc. The Procurement and Supply Manager’s Desk Reference – Second Edition 2

* Chapter 4 Evaluating Offers Responsiveness Capability Operational capacity Technical ability Copyright (c) 2012 by John Wiley & Sons, Inc. The Procurement and Supply Manager’s Desk Reference – Second Edition 3

* Chapter 4 Financial Analysis Measures of Liquidity Current Ratio Quick Ratio Receivables Turnover Ratio Payables Turnover Ratio Debt to Equity Ratio Measures of Profitability Gross Profit Margin Net Operating Margin Return on Assets Return on Investment Copyright (c) 2012 by John Wiley & Sons, Inc. The Procurement and Supply Manager’s Desk Reference – Second Edition 4

* Chapter 4 Financial Data Sources Dun and Bradstreet: www. dnb. com EDGAR: http: //www. sec. gov/edgar/searchedgar/companysearch. html Hoovers: www. hoovers. com Market. Watch: www. marketwatch. com Standards and Poor's: www. standardandpoors. com Moody's: www. moodys. com Equifax Supplier Data Management Services http: //www. equifax. com/commercial/datamanagement/supplier-datamanagement/en_us Copyright (c) 2012 by John Wiley & Sons, Inc. The Procurement and Supply Manager’s Desk Reference – Second Edition 5

* Chapter 4 Market Share Service Quality Management Process Customers and Reputation Financial Stability Copyright (c) 2012 by John Wiley & Sons, Inc. The Procurement and Supply Manager’s Desk Reference – Second Edition 6

* Chapter 4 Qualifying the supplier Order processing and fulfillment Operations Quality systems Cost control Finance Management Copyright (c) 2012 by John Wiley & Sons, Inc. The Procurement and Supply Manager’s Desk Reference – Second Edition 7

Chapter 4 * Quantitative Analysis Weighted Average Scorecard Copyright (c) 2012 by John Wiley & Sons, Inc. The Procurement and Supply Manager’s Desk Reference – Second Edition 8

* Chapter 4 Weighted Bid Analysis Example: Supplier A has a poor billing process Measured additional cost is 1% Supplier A’s shipping cost 2% more Supplier B has no added cost factors Supplier A’s original bid Supplier B’s original bid $142, 000 $144, 000 Supplier A’s transformed bid adding 3% = $146, 200 Copyright (c) 2012 by John Wiley & Sons, Inc. The Procurement and Supply Manager’s Desk Reference – Second Edition 9

* Chapter 4 Ethical Principles Example: http: //www. hsbc. com/1/2/purchasing/ethical-code-of-conduct Managing Records and Data Importance of documentation Copyright (c) 2012 by John Wiley & Sons, Inc. The Procurement and Supply Manager’s Desk Reference – Second Edition 10