Procurement Strategy Supply Chain Management - 1170 Words

1 Introduction Procurement strategy is the important strategy involve the supply chain management, It provides the business could access the opportunities to reduce the cost, makes the quality promise, consequensely, gain the profit. The supplier selection process starts with the requirements of the materials for the business. The processes of the supplier selection include supplier identification, supplier evaluation and set the contract with the supplier. Supplier selection is designed to ensure their quality, safety and efficiency. 2 The main body 2.1 Supplier selection process 2.1.1 supplier identification At first, the business must identify potential suppliers applied to the procurement strategies as described in the procurement†¦show more content†¦Green Chilly has to analyze all the information together about potential suppliers. Generally, the business make 3 types of request to suppliers, request for information(RFI), request for proposal(RFP), request for quote(RFQ), (Beil and Ross, 2009) the suppliers must give the response according to these three requests. There are more complex factors take into consideration to select the suppliers, such as environmental, social, political, and customer satisfaction. It is important to identify the requirement and the criteria for the different types of the supplier in the business, the quality and the price is widely used in the supplier selection, according to the Green Chilly restaurant, the criteria can be divided into the food supplier and nonfood supplier, because of the restaurant request a high requirement for the fresh foo d, delivery is the most important factors to consider, the non-monetary term is applied to the food supplier. The equipment in the restaurant could use the monetary criteria to reduce the cost. Additionally the supplier s operational capacity, technical capability and financial ability should be taken under consideration (Solish and Semanik 1999). 2) Determine Sourcing Strategy . It is important to determine the sourcing strategies,