Selecting the Right Suppliers Is Crucial to Success

With a good fix on where the action should begin, the next element in the SRM sequence is to decide on a selection criterion that makes sense to the firm, its internal partners, and the few companies selected for a collaborative effort. That means the firm needs to apply a format for picking the names of the most likely candidates for SRM activities, such as that represented in Eigure 9.3. 

Supplier Category/F oeus Basic Value Added Preferred Strategic 

Relationship Product or service as conunodity Impacts operational efficiency Process expertise valued Unique advantage is vaJued 

Operation Mode Competitive bid Performance incentive Continuous improvement Flexible, agile, collaborative 

Capability Fulfill to requirements Deploy specific competencies Customized expertise skUls Ability to assist with market changes/demands 

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