The Purchasing/Procurement Process 119
Stage 4: Supplier Search
The buyer now tries to identify the most appropriate suppliers, by examining trade
directories, doing a computer search, phoning other firms for recommendations,
scanning trade advertisements, and attending trade shows. However, these days the
most likely place to look is on the Internet. This levels the playing field, because
smaller suppliers have the same advantages as larger ones and can be listed in the
same on-line catalogs for a nominal fee.
One of the more comprehensive, global on-line catalog libraries is being assem-
bled by Worldwide Internet Solutions Network Inc, better known as WIZ-net (www.wiz-
net.net). The firm’s database includes full catalogs from more than 72,000 manufac-
turers, distributors, and industrial service providers around the world, containing
more than 8 million product specifications. For purchasing managers, this kind of
one-stop shopping can be an incredible time saver (and price saver, because it allows
easier comparison shopping). And it is more convenient: WIZ-Net also offers secure e-
mail so buyers can communicate directly with suppliers to ask for bids or to place
orders.^22
To get noticed during this buyphase, the supplier should get listed in major on-
line catalogs or services, develop communications to reach buyers who are seeking
new suppliers, and build a good reputation in the marketplace. Suppliers who lack
capacity or have a poor reputation will be rejected, while those who qualify may be vis-
ited by buyer’s agents, who will examine their facilities and meet their personnel. After
evaluating each company, the buyer will end up with a short list of qualified suppliers.
Stage 5: Proposal Solicitation
In this stage, the buyer is ready to invite qualified suppliers to submit proposals. When
the item is complex or expensive, the buyer will require a detailed written proposal
from each qualified supplier. After evaluating the proposals, the buyer will invite a few
suppliers to make formal presentations.
Business marketers must thus be skilled in researching, writing, and presenting
proposals. Their written proposals should be marketing documents, not just technical
documents. Their oral presentations should inspire confidence, positioning their
company’s capabilities and resources so that they stand out from the competition.
A supplier’s first priority during this stage is to become qualified or, in some cases,
to become certified, so it will be invited to submit proposals. Consider the hurdles that
Xerox has set up for suppliers. Only suppliers that meet ISO 9000 international quality
standards can qualify for certification. These suppliers must complete the Xerox
Multinational Supplier Quality Survey, participate in Xerox’s Continuous Supplier
Involvement process, and undergo rigorous quality training and evaluation based on
the Malcolm Baldrige National Quality Award criteria. Not surprisingly, only 176 com-
panies worldwide have become certified Xerox suppliers.^23
Stage 6: Supplier Selection
Before selecting a supplier, the buying center will specify desired supplier attributes
(such as product reliability and service reliability) and indicate their relative impor-
tance. It will then rate each supplier on these attributes to identify the most attrac-
tive one.
At this point, the buyer may attempt to negotiate with preferred suppliers for
better prices and terms before making the final selection. Despite moves toward strate-
gic sourcing, partnering, and participation in cross-functional teams, buyers still spend
a large chunk of their time haggling over price, which remains a key criterion for sup-