Describe four product types and purchasing practices with an example of each product type.
Supplier selection is a process to identify the most viable business partner(s) and develop a long-term relationship between an organization and suppliers. Supplier selection is crucial for the following:
Reduce purchase risks (quality of the product)
Save an organization’s financial resources (proper pricing)
Smooth operation (matching capability and delivery commitment)
Sensitive to business integrity and intellectual properties.
Suppliers as a partner can be part of the success of any organization.
