1. What are the two primary approaches for evaluating suppliers? How do they differ?
There are two primary approaches for evaluation suppliers. One is processed based. Process-based evaluations are useful in assessing how an intervention is being implemented or whether it is producing the necessary measurements. Process-based evaluations are used to understand how program works and delivers its result. It is assessment of supplier’s service and production process. It can get deeper knowledge of supplier audits. Suppler audits can involve assessment of supplier’s structure (management, people, quality, innovation), resources (technology, processes), health (financials, risk), and responsibility (social, environmental). Process-based evaluations are intended to answer some questions. Like what is required to deliver the program in term of resources, products and services? ; How are individuals implementing the intervention trained? ; What are considered the program’s strengths and weaknesses?
A performance- based evaluation is focused on the supplier’s actual performance on a variety of criteria, such as cost and quality. Company evaluated supplier selectin and performance based on the weight of evaluation criteria. Company should know which criteria is most important for own company and which criteria is not matter for own company. Many company use supplier scorecard to report performance information to their supplier.
A process-based approach is more know company detail. The other one get information is direction own company choose supplier. Another one use current criteria to Assessment Company. Supplier evaluation generally involves multiple criteria. There criteria are all important and there are can used in different situation. Sometime vendor selection criteria may be contradictory. It is important to understand potential trade-off between them. So