Sourcing decisions supplier selection

In the pre-qualification process (Phase I), readily available qualitative and quantitative data are collected for the various suppliers. This data can be obtained from frade journals, Infernet, and pasf transactions to name a few sources. Once fhis dafa is gafhered, these suppliers are evaluated using multiple criteria ranking methods. The decision maker (DM) then selects a portion of the suppliers for exfensive evaluation in Phase II. 

The technical Uterature is very reliable in helping the decision makers to select the appropriate material for the specific application and environment and can narrow the choice of materials to a manageable number of alternatives from which a final choice can be made quickly. Material suppliers are excellent sources of guidance in selection of proper alloys. Major suppliers of materials often maintain a staff of consultants to advise customers on the proper use of their material. 

Many managers find comfort in this arrangement. Having multiple suppliers, they feel, provides the "best," often the lowest, price. Decisions over source selection are simplified. Multiple suppliers also are perceived as assuring a reliable supply. If one vendor has a problem, another will step in to cover the shortfall. Managers also equate low price with the most cost-effective solution. Indeed, their performance measures often support that supposition. 

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