Supplier selection is a stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers. During supplier selection, the buying center often will draw up a list of the desired supplier attributes and their relative importance. Such attributes include product and service quality, reputation, on-time delivery, ethical corporate behavior, honest communication, and competitive prices. The members of the buying center will rate suppliers against these attributes and identify the best suppliers and they may attempt to negotiate with preferred suppliers for better prices and terms before making the final selections.
Definition