What is the correct sequence of the four stages of supplier selection?

The correct sequence of the four stages of supplier selection starts with supplier evaluation, followed by supplier development, negotiations, and finally contracting.

This process begins with supplier evaluation, which is the critical first step where potential suppliers are assessed based on various criteria such as quality, cost, reliability, and capability to meet the organization's requirements. The goal here is to identify which suppliers have the potential to become partners.

Once suitable suppliers are identified, the next stage is supplier development. This step involves working closely with selected suppliers to enhance their capabilities, potentially leading to improvements in processes and performance that will benefit both parties. This stage is essential for fostering strong supplier relationships and ensuring that they can meet future demands.

Following supplier development, negotiations take place. During this stage, terms of the relationship, including pricing, delivery schedules, and service levels, are discussed and agreed upon. Effective negotiations help in establishing a solid foundation for a long-term partnership.

The final stage is contracting, where the agreements reached during negotiations are formalized into a legal contract. This contract serves as a binding document that outlines all the obligations and expectations of both parties.

Each stage plays a vital role in the overall supplier selection process, contributing to a strategic partnership that can lead to improved supply chain performance