Professional Documents
Culture Documents
2009
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INTRODUCTION
The concept of retail business has changed from the manufacturer driven to customer driven. Buying house are playing a vital role in this global purchasing environment to deliver the right product, at right place, at right price, in right quantities and qualities at right time with right Manufacturing Process with maintaining proper social compliance. So its an utmost importance to the buyer to evaluate and select vendors, and structuring the vendor base to fulfil the customer requirements.
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OBJECTIVES: To establish an efficient vendor evaluation framework for the buying house. SUB-OBJECTIVE: To study the current vendor evaluation system in Decathlon. Critically analyse the present evaluation procedure and to study the present vendor evaluation system in other buying organization. To Design a Vendor Evaluation framework for the Buying House.
2009 Jiaul Haque Email id: jiaul.maku@gmail.com 3
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METHODOLOGY
Study the literature available on vendor evaluation system. Study the current vendor evaluation stages at Decathlon Study the current system of vendor evaluation followed by the buying house. Critically analyze the current system. Study the other various criteria present to perform vendor evaluation. Suggest changes if needed, and implement the same or design or develop a new evaluation framework which is more effective and efficient. Analyse the new Evaluation Framework.
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VENDOR SELECTION AND EVALUATION PROCESS Assessing own sourcing needs. Identify key sourcing requirement Determine Supplier Sourcing strategy Identify potential supply source Preliminary evaluation of Potential Vendors Determine method of supplier evaluation and selection Select supplier
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1. Weighted rating method 2. Single most important criterion method 3. Minimum cut-off method
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WEIGHTED RATING METHOD Criteria selection Criteria weighting Supplier selection Supplier rating Weighted rating
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1. Overall score 2. Main criteria 3. Sub criteria 4. Scoring range 5. Weighting of score
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Continue..
Supplier price quotation
Supplier Pricing Policy matching
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The history of the establishment regarding delivery issue Delivery on time percentage Quantity reliability Respect to Compliance with shipping instructions (GTD) Quality Non quality cost rate Quality performance of deliveries Problem solving Complaint/Rejection level
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Commercial
Follow-up commercial (events of prod, of delivery, delay for the requests)
Purchasing
Sourcing process Subcontractor performance
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Conception Development
Specific know-how Number of new products or solution proposed per year Design office or development capacity Number of prototype done to get the right one as per order Time to get first prototype (in days)
Competence
Industrial engineering Customer support and communication Electronic communication Merchandising setup
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Production Flow
Flexibility of the organization to accept the variation in order quantity with respect to the given forecasted quantity. Production quality- no of quality problem in last year.
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NEW SUPPLIER EVALUATION FRAMEWORK There are three stages of documentation for vendor evaluation. These three document to be completed to complete vendor evaluation. These are 1. Target Supplier evaluation minimum criteria information Form 2. Supplier Introduction Framework 3. Supplier Evaluation Framework. I. Changeable Framework Parameters:
Sl No 1 2 3 4 5 6 7 8 9 10
MAIN CRITERIA Conception - development Design - development Production - flow Quality Commercial Financial aspects & generalities Production Process Pricing policy Desirability Other productionJiaul Haque Email id: facility jiaul.maku@gmail.com Total
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Overall Score Calculation: Each parameter weighting score= (% weight*Grade Point)/4 Final Performance of the supplier is expressed by adding all the individual parameters weighted score. It is expressed as percentage.
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Continue
This format can be fitted for the evaluation of any target capacity suppliers and all the categorization of high, medium; low can be defined as per the requirements of the buyers. Through this evaluation framework many figures can be co-related to compare many of suppliers. As all the parameters are more elaborately defined it will take less time to perform vendor evaluation. Less skilled professional will be able to perform the vendor evaluation trough this framework. Here the evaluator has a clear idea about requirements of the necessary infrastructure of the supplier.
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THANK YOU!!!
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