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Description: A variety of evaluation procedures are possible there is no best method or approach. The important thing is to make certain that some procedures are used. The manager must identify all potential suppliers for the item(s) being purchased. The next step is to develop a list of factors by which to evaluate each supplier. Management can use the variables mentioned in this text or develop another list. Once the factors have been determined, the performance of individual suppliers should be evaluated on each factor (e.g., product reliability, price, ordering convenience).
After evaluating suppliers on each factor, management must determine the importance of the factors to its particular situation. If, for example, product reliability is of paramount importance to the firm, that (actor will be given the highest importance rating.
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