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
In the growth stage of a product's life cycle, a typical operations strategy would  be: Increasing capacity. Short production runs. Cost minimization.

A large unit manufacturing electrical goods which has been known for its liberal personnel policies and fringe benefits is facing the problem of low productivity and high absenteei

Reliability: Refers  to  the accuracy  and consistency  of a measuring tool. A measure is reliable when  an  individual remains nearly  the  same  in repeated measurements. Re

Internal Local Format   Internal formats are so called because they are internal/local to a software system. They can be changed specifically as per the needs of the local syst

Force Account  You have learnt that direct contracting is used under a limited number or exceptional circumstances without inviting any open bids.  Force account is to make

Question 1: (a) Operations management is an integral part of an organisation. Show how operations management can contribute to the success of an organisation. (b) Differen

LIBRARY CATALOGUE AND THE FIVE LAWS OF LIBRARY SCIENCE The Five Laws. of Library Science are a set of basic guiding principles for designing and operating a library or a libr

Collection and Storage of Documents: From the dawn of civilisation man has recognised the need for collecting and preserving the records of human thought. Books and other grap

QUESTION 1 Critically examine the nature of people-organisation relationship. Why is it important to distinguish between the ‘intent' and the ‘implementation' of management dec

3. "Patient self-determination and autonomy are under the law ancillary and derivative from the well-articulated right of privacy. Under this well established right, procreative fr