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 for selecting suppliers for providing components/services can be dependent
New Supplier Onboarding Process
New supplier onboarding is an independent process as well as sub-process of the overall source-to-pay process orchestration. 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, as well as bi-directional integration with multiple internal and external systems. An example process designed with ZFlow is show below.