Selecting the right supplier for a component/service is critical to product, quality and operational excellence. The rigor that goes into evaluating and selecting depends upon on the criticality of the component/service to the company, product and operations. Organizations use different criteria for categorizing suppliers. A couple of examples are given below
Supplier or Commodity Categorization
Supplier Evaluation Criteria
Evaluation criteria and their weighting for selecting suppliers can be dependent upon specific program needs. Often this is a cross-functional process with input from multiple stakeholders.
New Supplier Onboarding Process
Once the new supplier is selected the onboarding process ensures that the supplier is able to effectively engage and perform well. Depending on the type of supplier and region the process can be quite extensive requiring orchestration of internal workflows, getting information from the supplier, risk assessment, contracting, and agreements on statements of work. In addition, the supplier needs to be established in various systems so that collaboration and payment processes are properly supported. The overall onboarding process often requires integration with multiple internal and external systems. An example process designed with ZFlow is show below.