Eskom Procurement Book 2015

SUPPLIER RELATIONSHIP MANAGEMENT

Figure 5.1: Supplier selection process.

• Assembling an evaluation team: Assemble a team of people who have a vested interest in the particular supplier selection process. If the goods to be purchased are critical, appropriately qualified individuals from key functional areas such as operations, engineering, finance and procurement should be included in the team. Each will play the role of providing the expertise related to his/her particular area. • Defining the product, material, or service: Define the specifications for the product, material or service for which a supplier is being sought. The technical and business requirements to be involved in the purchases as well as the expected supplier requirements are also clearly spelt out. Team members may also be consulted in the process. • Discovering potential suppliers: This is the process of searching for a list of potential suppliers who will be able to deliver the products, materials or services required. Sources that can be consulted in order to get potential suppliers include supplier websites, the department’s supplier database, trade journals, trade shows and professional organisations. • Evaluating potential suppliers: After compiling a list of potential suppliers, the supplier selection team evaluates each prospective supplier against the criteria set in Stage 2 of the supplier selection process. Various instruments are available for this purpose and include supplier surveys, financial condition analysis, third party evaluators, evaluation conferences, facility visits and quality capability analysis. • Selecting suppliers: When one or more suppliers have succeeded in the evaluation phase, the supplier selection team invites the potential suppliers to

94 CHAPTER 5