Abstract: Supplier selection is the process by which firms identify, evaluate, and contract
with suppliers. The supplier selection process deploys a tremendous amount of a firm’s financial
resources. In return, firms expect significant benefits from contracting with suppliers
offering high value. This article describes the typical steps of supplier selection processes:
identifying suppliers, soliciting information from suppliers, setting contract terms, negotiating
with suppliers, and evaluating suppliers. It highlights why each step is important,
how the steps are interrelated, and how the resulting complexity provides fertile ground for
ORMS research.
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