Global Purchasing and Supply: Case Study in Purchasing

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Apr 2010 · GRIN Verlag

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While, companies are forced by competition to improve their products, they, in turn, pressure suppliers to upgrade their performance on quality, service, and price. Hence, supplier selection is therefore one of the most important decision making tasks. Since selecting the right supplier significantly reduces costs and improves corporate competitiveness, is the objective of supplier selection to identify suppliers with the highest potential for meeting a firm’s needs consistently and at an acceptable cost that satisfy both parties (Heinritz et al. 1991, p.159). Selection is a broad comparison of suppliers using a common set of criteria and measures. “Selection criteria typically fall into one of four categories: supplier criteria, product performance criteria, service performance criteria, or cost criteria”(Dobler et al. 1990, p. 173). However, the level of detail used for examining potential suppliers may vary depending on a firm‟s needs. The overall goal of selection is to identify highpotential suppliers. Thoughs have been given as well to the other important strategic and operational factors such as quality, delivery, flexibility. “Supplier selection criteria must include strategic and operational factors as well as tangible and intangible factors in the analysis”(Dogan and Sahin 2003, p.420). This study aims to show Dan Summerfield the usage of Kraljic comprehensive portfolio approach for the determination of a set of different purchasing strategies. A model for decision-making and so how the techniques could evaluate the objectives in determining the best compromise solution for supplier selection demonstrated by a simple vendor rating.