{"id":778,"date":"2013-11-14T18:46:47","date_gmt":"2013-11-14T18:46:47","guid":{"rendered":"http:\/\/proqc.com\/blog\/?p=778"},"modified":"2023-09-25T11:49:36","modified_gmt":"2023-09-25T11:49:36","slug":"using-a-grid-analysis-for-supplier-selection","status":"publish","type":"post","link":"https:\/\/proqc.com\/blog\/using-a-grid-analysis-for-supplier-selection\/","title":{"rendered":"Using a Grid Analysis for Supplier Selection"},"content":{"rendered":"An article was published in MasterControl&#8217;s November <a href=\"http:\/\/www.mastercontrol.com\/newsletter\/?lne=nold&amp;nlc=nwslet\" target=\"_blank\" rel=\"noopener noreferrer nofollow noindex\">newsletter<\/a> that simplifies the process of supplier selection. \u00a0A grid analysis is great for almost any decision-making situation where you want to objectively compare multiple options.\u00a0 It also complements many other decision-making tools as well.\r\n\r\nPer the article, factors that should be considered in the grid analysis for supplier selection may include:\r\n<h2><strong>Cost\u00a0<\/strong><\/h2>\r\nInitial quotations and negotiations are not always representative of future costs.\u00a0 \u00a0\u00a0However, this is certainly an important competitive advantage if that\u2019s the desired positioning.\u00a0 Contractual commitments should be discussed to avoid incremental increases.\r\n<h2><strong>Quality\/Standards\u00a0<\/strong><\/h2>\r\nDepending on the industry, specific supplier audits may be required.\u00a0 If the organization requires ISO or other certifications, audit reports are a useful snapshot of the supplier\u2019s strengths and weaknesses in specific areas. \u00a0This should incorporate management as well.\r\n<h2><strong>Location <\/strong><\/h2>\r\nThe geographic component of supplier selection not only affects cost but it can also be required for certain products.\r\n\r\n<strong>Shipment Expectations\u00a0<\/strong>\r\n\r\nThe quotation and audit reports should include enough information to reasonably determine how well the supplier complements your existing demand schedules.\r\n<h2><strong>Expansion Capabilities <\/strong><\/h2>\r\nLong-term strategy will require that any supplier partnership considered important during the expansion plans of the organization should not be overlooked.\r\n<blockquote><em>Grid analysis can be done in two ways, with or without weights.\u00a0 If the assumption is that each factor decided on is equal in importance, go through each supplier and provide a rating for each factor based on all information available.\u00a0 Do this for each of the three and total each row.\u00a0 Scale each choice from 0 (poor) to 5 or 10 (great), and you don\u2019t have to use different ratings for each one.\u00a0 Assign each factor and supplier the rating it deserves based on all of the available information.\u00a0<\/em>\r\n\r\n<em>For most situations, we know that all factors are not equal in importance.\u00a0 That being true, a grid analysis can adapt to placing weights of importance on each factor.\u00a0 To do this, multiply out the factors for more accurate results.\u00a0 Weights may include something that is not important at all, which may have no value assigned, or something that is very important that may be assigned a weight of 5 or 10. \u00a0\u00a0If a factor is determined to be twice as important than others, assign it a weight of 2.<\/em>\r\n\r\n<em>Grid analysis can also incorporate team decision-making and offers useful comparative perspective as well.\u00a0 If everyone on a team completes the grid analysis process individually, take the final score of each supplier from each team member and add them together.\u00a0 Divide that number by the number of team members.\u00a0 Do this for each supplier.<\/em><\/blockquote>","protected":false},"excerpt":{"rendered":"An article was published in MasterControl&#8217;s November newsletter that simplifies the process of supplier selection. \u00a0A grid analysis is great for almost any decision-making situation where you want to objectively compare multiple options.\u00a0 It also complements many other decision-making tools as well. Per the article, factors that should be considered in the grid analysis for [&hellip;]","protected":false},"author":4,"featured_media":3167,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[17,166,18],"class_list":["post-778","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-supply-chain","tag-quality","tag-quality-tools","tag-supplier"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Using a Grid Analysis for Supplier Selection - Pro QC Blog<\/title>\n<meta name=\"description\" content=\"Factors that should be considered in grid analysis for supplier selection may include, cost, quality, location, shipment expectation &amp; expansion capabilities.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/proqc.com\/blog\/using-a-grid-analysis-for-supplier-selection\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Using a Grid Analysis for Supplier Selection - 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