Supplier selection refers to the process of evaluating and choosing the most suitable suppliers to fulfill an organization's procurement needs. It involves identifying potential suppliers, assessing their capabilities, and comparing them against predetermined criteria to make an informed selection decision. The supplier selection process typically includes steps such as conducting market research, issuing requests for proposals (RFPs), evaluating supplier proposals, conducting supplier audits or site visits, and negotiating contracts.
The goal is to identify suppliers that can provide high-quality products or services, meet delivery requirements, offer competitive pricing, demonstrate financial stability, exhibit strong ethical practices, and align with the organization's strategic objectives. Effective supplier selection ensures the organization's procurement needs are met efficiently and effectively while building long-term, mutually beneficial relationships with suppliers.