Identify the business needs and supplier requirements
2
Develop a potential supplier list
3
Create a request for proposal (RFP)
4
Send RFP to potential suppliers
5
Receive and review supplier responses
6
Approval: Initial Review Responses
7
Rank and shortlist potential suppliers
8
Conduct supplier interviews
9
Approval: Interview Findings
10
Perform a detailed supplier evaluation
11
Approval: Detailed Evaluation
12
Negotiate with preferred suppliers
13
Formally agree on terms and conditions
14
Establish a contract and service level agreement
15
Plan and execute supplier transition process
16
Monitor supplier's initial service delivery
17
Evaluate and rate supplier performance
18
Approval: Supplier Performance
19
Handle contracts and supplier relationship management
Identify the business needs and supplier requirements
This task aims to identify the specific business needs and requirements for selecting a supplier. It involves understanding the organization's goals and objectives, analyzing current processes and resources, and determining what qualities and capabilities the supplier should possess. By clearly defining the needs and requirements, the organization can ensure that the chosen supplier will meet their expectations and contribute to their success. What are the current challenges in supplier selection? What tools or resources can help in identifying the business needs and requirements?
Develop a potential supplier list
This task involves creating a list of potential suppliers based on the identified business needs and requirements. It requires conducting market research, exploring existing supplier networks, and considering recommendations and referrals. The goal is to generate a comprehensive and diverse list of potential suppliers who can meet the organization's needs. How can you ensure the supplier list includes various options? What criteria should be used to evaluate potential suppliers?
Create a request for proposal (RFP)
In this task, a request for proposal (RFP) is created to clearly communicate the organization's requirements and expectations to potential suppliers. The RFP should include detailed information about the project or service, desired outcomes, evaluation criteria, and any specific questions or instructions. By preparing a comprehensive and well-structured RFP, the organization can effectively assess potential suppliers and make informed decisions. What key information should be included in the RFP?
Send RFP to potential suppliers
Once the RFP is prepared, it needs to be sent to the potential suppliers on the list. This task involves coordinating the distribution of the RFP, ensuring that all relevant suppliers receive the document in a timely manner. By effectively communicating the organization's requirements and expectations, the suppliers can prepare their proposals accordingly. How can you ensure the RFP is delivered to all potential suppliers?
Request for Proposal (RFP) - Supplier Evaluation Process
Receive and review supplier responses
After sending out the RFP, this task involves receiving and reviewing the responses from potential suppliers. It requires setting a deadline for proposal submission, organizing and documenting the received responses, and evaluating them based on the predetermined criteria. By carefully reviewing the supplier responses, the organization can identify the most promising candidates for further consideration. How can you ensure a fair and systematic review of supplier responses? What factors should be considered during the evaluation process?
1
Price
2
Quality
3
Experience
4
References
5
Capacity
Approval: Initial Review Responses
Will be submitted for approval:
Receive and review supplier responses
Will be submitted
Rank and shortlist potential suppliers
Based on the evaluation of supplier responses, this task involves ranking and shortlisting potential suppliers. It requires comparing the proposals against the predetermined criteria, assigning weights to different factors, and objectively assessing the strengths and weaknesses of each supplier. The goal is to identify a shortlist of suppliers who meet the organization's requirements and have the highest potential for success. How can you objectively rank and compare the supplier proposals? What factors should be given higher priority?
Conduct supplier interviews
In this task, interviews are conducted with the shortlisted potential suppliers to gain further insights and assess their compatibility with the organization. It involves preparing a list of interview questions, scheduling and conducting the interviews, and documenting the responses. By engaging in direct conversations, the organization can clarify any uncertainties and make well-informed decisions. What key questions should be asked during the supplier interviews?
Approval: Interview Findings
Will be submitted for approval:
Conduct supplier interviews
Will be submitted
Perform a detailed supplier evaluation
After conducting the supplier interviews, this task focuses on performing a detailed evaluation of the shortlisted suppliers. It requires assessing their financial stability, legal compliance, technical capabilities, references, and any other relevant factors. By thoroughly evaluating the suppliers, the organization can ensure the selection of a highly competent and reliable partner. What specific criteria or evaluation methods should be used for supplier evaluation?
Approval: Detailed Evaluation
Will be submitted for approval:
Perform a detailed supplier evaluation
Will be submitted
Negotiate with preferred suppliers
Once the preferred suppliers are identified, this task involves initiating negotiations to finalize the terms and conditions. It requires considering factors such as pricing, delivery schedules, quality standards, payment terms, and any other contractual aspects. By effectively negotiating with the preferred suppliers, the organization can establish mutually beneficial agreements that align with their goals. How can you ensure a fair and successful negotiation process? What alternative options should be considered?
Formally agree on terms and conditions
In this task, the organization and the preferred suppliers formalize their agreements by establishing the terms and conditions through legal documentation. It requires reviewing and finalizing the contracts, ensuring compliance with applicable laws and regulations, and addressing any outstanding matters. By formalizing the agreements, both parties can clarify their rights, responsibilities, and expectations. How can you ensure the contract covers all necessary aspects? Who should review the legal documentation?
Establish a contract and service level agreement
Once the terms and conditions are agreed upon, this task focuses on establishing a comprehensive contract and service level agreement (SLA) with the preferred suppliers. It involves drafting the contract and SLA, including key provisions such as delivery schedules, quality standards, performance metrics, dispute resolution mechanisms, and termination conditions. By clearly defining the expectations and responsibilities, both parties can ensure a mutually beneficial and sustainable business relationship. What key provisions should be included in the contract and SLA?
Plan and execute supplier transition process
In this task, the organization plans and executes the transition process from the previous supplier(s) to the newly selected one(s). It involves coordinating with various stakeholders, establishing communication channels, and managing the transfer of responsibilities, resources, and knowledge. By carefully managing the transition, the organization can minimize disruptions and ensure a smooth integration of the new supplier(s). What key steps should be taken to ensure a successful supplier transition?
Monitor supplier's initial service delivery
This task focuses on monitoring the initial service delivery of the selected supplier(s). It involves tracking and evaluating the supplier's performance against the agreed-upon metrics and standards. By closely monitoring the service delivery, the organization can address any early issues or deviations from the expected performance. What specific metrics or indicators should be used to assess the supplier's initial service delivery?
1
Timeliness
2
Quality
3
Communication
4
Responsiveness
5
Adherence to SLA
Evaluate and rate supplier performance
After the initial service delivery, this task involves evaluating and rating the performance of the selected supplier(s) on an ongoing basis. It requires monitoring and documenting their performance against the SLA, assessing their responsiveness to feedback and issue resolution, and considering factors such as quality, timeliness, and communication. By conducting regular evaluations, the organization can identify areas of improvement and maintain a high level of supplier performance. What specific methods or tools can be used to evaluate and rate supplier performance?
Approval: Supplier Performance
Will be submitted for approval:
Evaluate and rate supplier performance
Will be submitted
Handle contracts and supplier relationship management
This task focuses on the ongoing management of contracts and supplier relationships. It involves monitoring compliance with contractual obligations, addressing any disputes or changes in requirements, and nurturing positive and collaborative relationships with the suppliers. By effectively managing contracts and relationships, the organization can optimize the value derived from the supplier partnerships and ensure a sustainable and mutually beneficial cooperation. How can you foster positive supplier relationships? What measures should be taken to address contractual issues?
