Step 5 First Cut

The first cut will reduce the number of suppliers identified in Step 4 to three. These suppliers will be the ones that receive further consideratioa More suppliers can remain, but the remainder of the process will get cumbersome with many suppliers on the list. From this point on in the process you will be working with or considering only the three suppliers that remain after the first cut. 

Each member of the team receives a list of all current and potential suppliers. The suppliers are removed one by one until only three remain by agreement of all the team members. (This process is very similar to lawyers removing qualified jurors to get to the correct number.) The gut feelings and experiences of the team members begin to come into play. This is where the team s knowledge of all the suppliers is shared and decisions are made. 

When the first cut of the suppliers is made, the ones with the least or worst reputation with your organization are the ones that should be dropped first. That means that the final three should be the best perceived suppliers for your organization for this group of products. 

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