Selection of potential suppliers , Other Management

Assignment Help:

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. 


Related Discussions:- Selection of potential suppliers

Provide a checklist for a sustainable reform programme, Question 1: You...

Question 1: You are employed as a consultant to undertake a reform programme in a particular public sector environment. Provide a detailed checklist for a sustainable reform p

Developmental stages of customer acquisition and management, Question: ...

Question: CEOs admit that more money, time, and organisational changes will be required to make the needed transition from product or channel driven structures and tactics to a

Librarians room in library building in library management, Librarians room ...

Librarians room in library building in library management The librarian normally has a separate room of his own, adjacent to the work room and opposite to the  main counter ar

Management by objectives (mbo), Management by Objectives (MBO) Manageme...

Management by Objectives (MBO) Management technique is based on target-setting theory in which employees are given specific measurable goal to achieve. MBO has been shown to

Surveys and censuses, Surveys and Censuses   There are also organisatio...

Surveys and Censuses   There are also organisations which have been set up specifically to gather statistical information through censuses and surveys. This may be considered a

Shelf arrangement - library management, Shelf Arrangement: Once the li...

Shelf Arrangement: Once the library has a taken decision on the number of sequences in which the total collection is to be organised the material in the shelf in each sequence

Organisation Behaviour, Rajender Kumar was a production worker at competent...

Rajender Kumar was a production worker at competent Motors Limited (CML) which made components and accessories for the automotive industry. He had worked at CML for almost seven ye

Explain an alternative model of change, Question: "According to Lewin, ...

Question: "According to Lewin, change underlies the modification of those forces that keep a system's behaviour stable" (a) Why do people in organisations at times prefer t

Library catalogue and the five laws of library science , LIBRARY CATALOGUE ...

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

Principles and practices of Management , Mr. Vincent, the Manager of a larg...

Mr. Vincent, the Manager of a large supermarket, was taking a management course in theevening programme at the local college. The Professor had given an interesting but disturbingl

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd