Description
The processes of Identifying Potential Suppliers are done as part of analysing external stakeholder information.
The objective is to assess the supplier “universe” and identify potential suppliers for the specific commodity.
Together with other assessments, such as supply chain analysis, supply market analysis, and supplier differentiation,
one would get a well- rounded view of the external factors that may impact on an organisation’s procurement decision making process.
Identifying and selecting potential suppliers is a process consisting of different phases. Before discussing the process,
it should be mentioned that it does not always follow the same path and is not always applied in the same way, because circumstances and the product or service being purchased differ.
Objective:
To assess the supplier “universe” and identify potential suppliers for the specific commodity.
Output:
- List of potential suppliers
IDENTIFICATION OF POSSIBLE SUITABLE SUPPLIERS
In some cases a large number of suppliers will be easily identified, but in others a real effort will have to be made to trace suppliers.
When potential suitable suppliers are being identified, all possible sources of information should be identified.