ABSTRACT
Companies are forced to lower costs and avoid the slingshot effect between the companies. The performance of the supplier or sourcing strategy can be a reason to select another supplier. An enterprise selects by means of a single sourcing strategy, thus only one supplier, or a multiple sourcing strategy, thus several suppliers. The ultimate selection of supplier(s) depends on the criteria and their scores. For this, the criteria, benchmarks, weighting and score are entered in a decision table and thereafter totalised. With the final selection, the supplier will in practice have to prove that it fulfils the functional requirements before contract negotiations can start. In these negotiations, the legal aspects are covered as well as the extra agreements made between supplier and customer. After the supplier(s) has (have) been finally selected, it has to be checked that the agreements made are indeed being lived up to.
