Selection of potential suppliers , Other Management

Selection of potential suppliers 

This is an important function of the purchase department. If the material under reference is a standard item covered by company standards, then the standards will have a list of approved suppliers for the item under reference. This item would have been approved after due analysis of samples and ensuring its compliance with national or international standards. If the material/component under reference is a mechanical item/equipment, list of suppliers for this type of item may be identified based on historical data. 

In case items under reference are first buy category, suppliers? catalogue or trade journal directory will be of use. Number of potential suppliers depends on factors like value, importance of the part and so on. The sources of specifications are: 

  •   Standards. 
  •   Buyer specification. 
  •   Engineering drawing. 
  •   Suppliers catalogue. 
  •   Miscellaneous like part sample. 

Procurement is the sourcing process that a company uses to get the goods and services it requires.  

  • Sourcing: There are three types of sourcing:  

1.  Sole source for proprietary items. 

2.   Multiple sources for general/off the shelf items  to get price competitiveness. 

3.   Single source, as decided by organisation for critical items. 

  • Contract buying: Material requirement planning sometimes encounters a situation wherein it needs a few items of general nature in small quantities at short notice.  The shortage would have occurred due to some unforeseen circumstances in supply chain. We can deal with this type of buying at planner level in material requirement planning. The  purchaser sometimes issues the raw material for such requirement on chargeable basis. 

After selecting the potential suppliers, buyers may request bids and quotes. It is generally termed as Invitation. 

Posted Date: 9/28/2012 1:12:20 AM | Location : United States







Related Discussions:- Selection of potential suppliers , Assignment Help, Ask Question on Selection of potential suppliers , Get Answer, Expert's Help, Selection of potential suppliers Discussions

Write discussion on Selection of potential suppliers
Your posts are moderated
Related Questions
T he merger process We learnt how to aligning M and A with corporate strategy. Now, let us study how the merger process takes place. The merger process is carried out in two w

CLASSIFIED CATALOGUE: A classified catalogue is a form of subject catalogue, in which the entries are arranged by the class number which representing the subject of document,

Question: A textile manufacturing company would like to implement a system for managing its production. The company does not have any in-house IT staff and has outsourced the c

Disciplines and Subjects - Library management: In a modern library the arrangement of documents is usually by subject. Thus, subject is the characteristic of division for arra

In order to give unique co-extensive representation to each subject in the UoS, the classificationist has to ascertain the various attributes - infinite, turbulently dynamic, conti

Question : (i) Give two reasons why fish could be aggregating around a floating object. (ii) What are the differences between (a) an anchored fish aggregating device; (b)

QUESTION (a) Explain, using examples, the Prevention, Appraisal and Failure (PAF) model for measuring quality costs and briefly assess its potential for use in a service organi

Observation Sampling Technique: Since it  is usually impossible  to  observe behaviour for extended period of time because of fatigue and boredom  one must plan how and when t

QUESTION a) Public sector projects are being resorted to on a public-private basis. Explain what is public-private-partnership (PPP)? b) What are the benefits of public-priv

This is a document which contains all relevant investor information regarding the operations of an organization issuing privacies.